Stocks tumbled on the Tokyo Stock Exchange on Thursday, hurt by a stronger yen as well as weak U.S. and Shanghai equities, sending the key Nikkei average below 21,000 briefly.
The 225-issue Nikkei dropped 422.94 points, or 1.97 percent, to end at 21,046.24, after briefly falling below the 21,000 threshold for the first time since June 18. On Wednesday, the index dropped 66.07 points.
The Topix index of all first-section issues closed down 33.14 points, or 2.11 percent, at 1,534.27. It shed 1.33 points the previous day.
Sentiment was battered by the yen’s rise and an overnight slide in U.S. stocks following U.S. President Donald Trump’s threat to impose additional tariffs on imports from China, brokers said.
A fall in Shanghai stocks and selling by hedge funds of Nikkei futures contracts accelerated the drop in Japanese stocks, they said.
The stock market was also weighed down by investor concerns about Japanese companies’ earnings as Trump’s remarks signaled that trade tensions between the world’s two largest economies will not ease anytime soon, the brokers said.
“Market players refrained from buying on dips” before earnings announcements by Japanese companies set to start next week and Sunday’s House of Councilors election, said Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc.
Falling issues far outnumbered rising ones 2,075 to 55 in the TSE’s first section, while 20 issues were unchanged.
Volume increased to 1.28 billion shares from Wednesday’s 1.02 billion.
Canon finished down 4.02 percent in response to a news report that the camera maker is expected to see a drop of about 40 percent in its consolidated operating profit for the year ending in December.
Oil names fell on lower New York crude oil futures, with Cosmo Energy dropping 5.31 percent and Idemitsu skidding 5.05 percent.
Japan Tobacco dropped 1.78 percent a day after the company reported lower domestic cigarette sales for June both in volume and value.
Among other major losers were electronic parts maker NOK and game maker Bandai Namco.
A handful of winners included cosmetics maker Kose and Akebono Brake.
In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average fell 410 points to end at 21,010.
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