Tokyo stocks lost 2.03 per cent today (October 21st) as investors worried about weak China growth.
Selling pressure grew after China said its economy expanded 7.3 per cent on-year between July-September, the slowest pace since the start of the global financial crisis.
The Nikkei 225 index at the Tokyo Stock Exchange closed at 14,804.28, while the Topix index of all first-section issues fell 1.55 per cent to 1,205.36.
This comes a day after the Nikkei rose four per cent on yen depreciation and a report stating Japan's national pension fund will increase its domestic equity holdings to 25 per cent from 12 per cent.
“October is typically a volatile month for the market, and thus far it hasn't disappointed (…)the volatility is likely to continue for a while, at least until the US (Federal Reserve policy) meeting on October 28th and 29th," Chibagin Asset Management general manager, Yoshihiro Okumura, told Dow Jones Newswires.
Learn about the Asian markets and CFD trading at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.