Nikkei hits 5-week low as German data, IMF downgrade fuel growth worries

martes 7 de octubre de 2014 22:02 GYT
 

* Fall in German factory orders highlights global growth
worries
    * Exporter shares fall as yen strengthens
    * LED makers buck trend after Nobel announcement

    By Thomas Wilson
    TOKYO, Oct 8 (Reuters) - Japan's Nikkei share average fell
to a five-week low on Wednesday as renewed global growth
concerns lifted the safe-haven yen, sending exporter stocks
skidding.
    Global share markets were hit on Tuesday as German
industrial production fell a surprisingly large 4.0 percent in
August from July, their biggest fall in 5 1/2 years.
 
    Adding to concerns about the health of the global economy,
the IMF also downwardly revised its 2015 global growth forecast
to 3.3 percent, warning of weaker growth in Japan and core
eurozone countries. 
     The Nikkei stumbled 1.6 percent in morning trade to
15,529.40, slipping to 15,185.32 at one point, its lowest level
since Sept. 2.
    "The German industrial production data reminds folks that
while U.S. data has been strong, much of the rest of the world
has been weak," said Stefan Worrall, director of equity cash
sales at Credit Suisse.
    "The question is whether market rallies outside of the U.S.
can continue or not," said Worrall.
    The IMF's downbeat view of Japan, however, was slightly at
odds with the position of the BOJ.  
    Governor Haruhiko Kuroda said on Tuesday that the central
bank would not embark on additional easing, despite weak
Japanese factory output and a nod to concerns at the negative
impact of the weak yen on small businesses and consumers. [ID:
nL3N0S22EG]
    The yen strengthened against the dollar as the gloom around
the global economy drove investors to the safe-haven Japanese
currency. It was trading at 108.35 per dollar, up from
six-year low of 110.09 hit last week, prompting investors to
sell shares in exporters.
    Carmakers were among the worst performers, with the Tokyo
Stock Exchange's transport equipment makers subindex 
falling 2.1 percent.  
    Mazda Motor Corp - seen as highly sensitive to the
yen's moves - tumbled 4.4 percent. Toyota Motor Corp 
and Honda Motor Co also fell 2.2 percent and 1.8
percent. 
    Machinery makers were another casualty, with Hitachi
Construction Machinery down 3.0 percent.
    Shares in LED lighting-related firms bucked the broader
market, after three Japanese physicists were awarded the Nobel
Prize in Physics for research work that led to the creation of
modern LED light bulbs. 
    Endo Lighting Corp. grew 1.8 percent and Iwasaki
Electric Co., Ltd jumped 3 percent. 
    The broader Topix was down 1.6 percent, while the 
new JPX-Nikkei Index 400 also fell 1.6 percent.

 (Reporting by Thomas Wilson; Editing by Shri Navaratnam)