Nikkei suffers as Chinese official withdraws from IMF summit
City Index October 10, 2012 2:15 PM
<p>The Nikkei 225 has suffered following a Chinese banking chief’s decision to withdraw from the IMF summit.</p>
The Nikkei 225 benchmark in Tokyo has suffered following news the governor of China's central bank is pulling out of this week's International Monetary Fund (IMF) summit in the Japanese capital.
Zhou Xiaochuan – who heads up the People's Bank of China and was scheduled to deliver a keynote speech at the event – has withdrawn from proceedings, as the world's number two economy continues in its territorial dispute with Japan over islands in the East China Sea.
As a result of this ongoing disagreement, Japan's businesses have suffered as growing anti-Japanese culture freezes out the nation's operations.
This week, Toyota reported a 49 per cent drop in Chinese sales for September, while Honda's demand was lower by 40 per cent in the country.
Officials in Japan commented that Mr Zhou's decision to bow out of the IMF summit is "regrettable".
At close of play in Tokyo this morning (October 10th), the Nikkei 225 was down by nearly two per cent (1.9 per cent) to an index value of 8596.2 points.
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