Nikkei dives to fresh 2-month low on global growth concerns

lunes 13 de octubre de 2014 21:52 GYT

* Nikkei breaks below 200-day moving average
    * Market worries Europe's slowdown may undercut U.S. growth
    * Strong yen hits exporters

    By Ayai Tomisawa
    TOKYO, Oct 14 (Reuters) - Japan's Nikkei share average fell
more than 2 percent to a fresh two-month low on Tuesday as Wall
Street tumbled on fears that global economic weakness will weigh
on U.S. growth.
    The Nikkei share average was down 1.6 percent at
15,054.90 by mid-morning trade after sinking 2.4 percent to
14,939.99 earlier, the lowest level since Aug. 8.
    It also broke below its 200-day moving day average of
    Japanese markets were closed on Monday for a holiday.       
    Exporters led the declines hit by a stronger yen, while
falling crude oil prices hurt such oil shares as Inpex Corp
    The International Monetary Fund's member countries on
Saturday said bold action was needed to bolster the global
economic recovery and they urged governments not to squelch
growth by tightening budgets too drastically, although Germany
poured cold water on the idea of a new global "crisis."
    "Just a while ago, people were talking about the pace of
U.S. rate hikes. But at the G20 meeting last weekend, the focus
was whether Europe may undercut U.S. growth," said Norihiro
Fujito, senior investment strategist at Mitsubishi UFJ Morgan
Stanley Securities.
    "Whether the U.S. market will enter a long-term correction
is the main concern now. If it does, the Japanese market will
likely follow suit."
    Immediate technical support is seen at 14,753, the lowest
intraday level market since Aug. 8, traders say.
    "The selling we see is from Asia-based institutions," said a
trader at a foreign brokerage, adding that long-only investors
were staying on the sidelines.
    But he said that when stock prices are low, investors have
hopes that there may be buying by such funds as Japan Post
Insurance, known as Kampo, the Government Pension Investment
Fund (GPIF), as well as the Bank Of Japan's ETF buying.
    The dollar crawled up 0.2 percent to 107.095 yen, but
remained in close range of a one-month low of 106.76 hit earlier
in the session.
    Toyota Motor Corp sank 3.1 percent, Honda Motor Co
 dropped 2.1 percent and Panasonic Corp 
declined 2.3 percent.
    Inpex fell 3.7 percent and Japan Petroleum Exploration
 dropped 2.4 percent after Brent oil prices tumbled more
than $2 a barrel intraday to their lowest since 2010.
    Takashimaya Co bucked the weakness, rising 2.0
percent after the department store hiked its full-year operating
profit to 916 billion yen from 900 billion yen for the year
through February.
    The broader Topix shed 1.7 percent to 1,221.43, and
the JPX-Nikkei Index 400 declined 1.6 percent to

 (Editing by Kim Coghill)