Stocks took another plunge after one-day rebound on the Tokyo Stock Exchange Monday, dampened by a steep fall in U.S. equities late last week.
The 225-issue Nikkei average tumbled 459.18 points, or 2.12 percent, to end at 21,219.50, a level unseen since Oct. 29 on a closing basis, after briefly losing over 500 points. On Friday, the key market gauge rose 177.06 points.
The Topix index of all first-section issues finished down 30.64 points, or 1.89 percent, at 1,589.81. It gained 9.85 points the previous trading day.
Investors were wary of the U.S.-China trade friction after the Dow Jones industrial average shed 2.24 percent on Friday following White House adviser Peter Navarro’s comments that the United States would raise tariffs on Chinese imports if the two countries fail to strike an agreement during their 90-day trade truce, brokers said.
China’s release on Saturday of weaker-than-expected exports and imports for November added to bearish market sentiment, brokers said.
“Investors were in no mood to buy stocks” even though they were more affordable after recent sell-offs, an official of a bank-affiliated securities firm said, noting a series of negative news flows from overseas markets.
Buying was held in check ahead of Tuesday’s vote on a draft deal on Britain’s exit from the European Union, or Brexit, by the country’s Parliament, the official also said.
Masayuki Otani, chief market analyst at Securities Japan Inc., said the market may become volatile this week, due to the Brexit vote, a slew of economic data announcements and the fixing on Friday of special quotations to settle Japanese stock index futures and options contracts.
Falling issues far outnumbered rising ones 1,951 to 149 in the TSE’s first section, while 22 issues were unchanged.
Volume increased to 1.38 billion shares from 1.37 billion shares on Friday.
Japan Display closed 10.61 percent lower after hitting a listing-to-date low, due to selling prompted by a media report that the company started reducing the production of liquid crystal display panels for U.S. technology giant Apple Inc.’s iPhone XR.
Nissan lost 2.91 percent after a fresh automobile inspection scandal came to light on Friday.
Other major losers included technology firms Sony and Murata Manufacturing, as well as clothing retailer Fast Retailing.
Oil names were buoyant after a recovery in crude oil futures in New York trading on Friday.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average shed 480 points to end at 21,140.