Nikkei falls to 3-week low on global manufacturing gloom

miércoles 1 de octubre de 2014 22:25 GYT
 

* Slow global growth adds to economy concerns
    * End of QE in U.S. also adds to market gloom
    * First Ebola case in U.S. hurt airline shares
    * Exporters hit, Honda falls 3.2 pct

    By Hideyuki Sano
    TOKYO, Oct 2 (Reuters) - Japanese shares tumbled to
three-week lows on Thursday morning after disappointing global
manufacturing activity stocked concerns over global growth,
while the first confirmed case of Ebola in the United States
heightened the risk-averse mood.   
    Japan's Nikkei share average fell 1.4 percent to
15,860.40, threatening to fall below a major support at 15,865 -
the kijun line on daily Ichimoku charts.
    Investors sold exporter shares that had benefited from the
fall in the yen in recent weeks. The yen hit a six-year low of
110.09 yen to the dollar on Wednesday but bounced back to around
108.97 yen on Thursday, helped by safe-haven bids as concerns
about the global economy resurfaced.
    A slew of surveys on Wednesday showed German factory
activity shrank for the first time in 15 months, China's
manufacturing sector barely grew, while the United States slowed
more than expected. 
    "The sentiment was already weak yesterday after exporters
didn't perform well even after the yen fell to 110 to the
dollar. The market will be in for a correction for now," said a
trader at a Japanese brokerage firm
    Honda Motor fell 3.2 percent, Toyota Motor Co
 dropped 2.1 percent and Suzuki Motor shed 3.3
percent.
    The disappointing global manufacturing figures came as
investors in Japan continued to grapple with the domestic
economy's struggles to recover from a slump triggered by an
April sales tax hike.  
    Global markets are also bracing for an end to the U.S.
Federal Reserve's third round of quantitative easing this month.
    "If you look back, U.S. stocks peaked one month before the
end of QE2. A rally driven by liquidity is coming to an end
worldwide," said Norihiro Fujito, senior investment strategist
at Mitsubishi UFJ Morgan Stanley Securities.
    The first case of Ebola diagnosed in the United States only
served to knock sentiment further, sending the U.S. S&P 500
stock index skidding 1.3 percent to a seven-week low of
1,946.16.
    The Ebola news pressured U.S. airline shares and hit their
peers in Tokyo, with the Tokyo Stock Exchange's air transport
sub index falling 3.2 percent, which would be its
largest fall in eight months if sustained.
    Japan Airlines fell 3.6 percent and ANA Holdings
 dropped 2.4 percent.
    Trading houses extended their losses as commodity prices
fell and some of them reported huge losses on energy
investments.
    Marubeni fell 2.4 percent after it was revealed
that it is preparing to sell a costly stake in a Canada coal
mine for what the potential buyer says could be as little as $1,
a day after a Tokyo rival said it would book losses in coal and
iron ore investments. 
    The broader Topix fell 1.8 percent, hitting a
one-month low at one point while the new JPX-Nikkei Index 400
 dropped 1.8 percent, faring worse than the Nikkei.

 (Editing by Shri Navaratnam)