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Bloomberg, (13/6) -- Japan’s Nikkei
225 Stock Average plunged, falling 19 percent from a recent high and
close to entering a bear market, as the yen rose to its strongest
against the dollar in more than two months.
The Nikkei 225 slumped 5.6 percent to 12,547.96 as of 12:39 p.m. in Tokyo, its third fall of more than 5 percent in the past month. The gauge dropped as much 6.6 percent today, the biggest loss since shares in Japan plummeted on May 23. Nikkei 225 futures lost 5.4 percent in Osaka and 5.1 percent in Singapore. The Topix sank 4.2 percent to 1,050.78 with all 33 industry groups retreating. “Selling breeds selling and it’s snowballing,” said Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors Ltd., which manages $126 billion. “There’s a global sell-off in risk assets. Short term there was froth and that needed to come out, especially in Japan.” All but one company on the Nikkei 225 fell. Toyota Motor Corp., the world’s No. 1 carmaker, sank 3.8 percent. Nomura Holdings Inc., Japan’s biggest brokerage, lost 4.8 percent as securities companies declined. Hino Motors Ltd. tumbled 7.9 percent for the biggest fall on the Nikkei 225. Kansai Electric Power Co. was the only share to rise. The yen today rose to its strongest level since April 4, when the Bank of Japan unveiled a plan to buy more than 7 trillion yen ($73 billion) of bonds every month in an attempt to secure 2 percent inflation. The Japanese currency gained to as much as 94.45 per dollar. “Investors are worried that the yen may strengthen even further,” said Tomomi Yamashita, a fund manager who helps oversee the equivalent of $5 billion at Shinkin Asset Management Co. in Tokyo. “There isn’t any good material to boost the market right now, and investors who had bought too much are feeling uneasy and now dumping shares.” |
Written by: Kontak Perkasa Futures
PT.Kontak Perkasa Futures, Updated at: 11:06 AM
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