Japanese shares tumble, Topix posts biggest fall in 6 1/2 months

jueves 2 de octubre de 2014 02:28 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 4.2 pct

    By Hideyuki Sano
    TOKYO, Oct 2 (Reuters) - Japanese shares tumbled to
one-month lows on Thursday as disappointing global manufacturing
activity surveys stoked concerns over global growth, while the
first confirmed case of Ebola in the United States fed into a
risk-averse mood.   
    Japan's Nikkei share average fell 2.6 percent to
15,661.99, while the broader Topix fell 2.9 percent to
to 1,280.15 - its biggest percentage decline since mid-March.
    Investors sold shares of exporters 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.
   Surveys on Wednesday showed German factory activity shrank
for the first time in 15 months, China's manufacturing sector
barely grew, and 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 4.2 percent, Toyota Motor Co
 dropped 3.5 percent and Suzuki Motor shed 5.7
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 April's
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 4.6 percent, its largest fall in
more than two years.
    Japan Airlines fell 4.6 percent and ANA Holdings
 dropped 4.8 percent.
    Trading houses extended their losses as commodity prices
fell and some of them reported huge losses on energy
investments.
    Marubeni fell 3.4 percent after it was revealed
that it is preparing to sell its 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 new JPX-Nikkei Index 400 dropped 2.8
percent.

 (Editing by Shri Navaratnam and Eric Meijer)