Nikkei drops to 2-month low on global growth concerns

jueves 9 de octubre de 2014 21:39 GYT

* Foreign investors main sellers - traders
    * For the week, Nikkei is down 2.7 percent
    * Fast Retailing jumps after strong outlook

    By Ayai Tomisawa
    TOKYO, Oct 10 (Reuters) - Japan's Nikkei share average fell
for the fourth straight day on Friday and hit a two-month low on
concern about the strength of the global economy, but Fast
Retailing Co outperformed after reporting rosy
    The Nikkei share average fell 1.1 percent to
15,321.69 by mid-morning, after sliding to as low as 15,259.95
earlier, the lowest level since Aug. 13.
    For the week, the benchmark has dropped 2.7 percent.
    Traders said foreigners were the main sellers, spooked by
recent weak data from Germany, which raised fears of a recession
in Europe's largest economy. Dissatisfaction at stimulus
measures introduced so far by the European Central soured
sentiment as well.
    "Foreigners who had chased the Nikkei and its futures in
July and August are taking profits now," said Hisao Matsuura,
senior strategist at Nomura Securities, adding that selling has
accelerated on Friday ahead of the three-day weekend.
    Japanese markets are closed on Monday for a national
    Last week, foreign investors continued to shun Japanese cash
stocks and futures, posting their biggest net selling in two
months, which indicated that the market may have entered a
correction phase after big rallies in the last month.
    Exporters were sold after the dollar slipped to a three-week
low of 107.53 yen. Honda Motor Co fell 2.0
percent, Canon Inc shed 1.6 percent and Tokyo Electron
Ltd declined 1.5 percent.
    Bucking the weakness, Fast Retailing, which operates Uniqlo
clothing stores, soared 2.6 percent and was the third-most
traded stock by turnover after it said it expects operating
profit to grow by more than a third in the year ahead.
    Social networking services provider Gree Inc jumped
11 percent after it and messaging application provider LINE Corp
said they had agreed to establish a joint venture that will
focus on the development and operation of mobile games for LINE
    The broader Topix fell 1.7 percent to 1,239.86, and
the JPX-Nikkei Index 400 declined 1.6 percent to

 (Editing by Kim Coghill)