Japanese stocks tumble as investors rattled by turmoil in China markets

martes 7 de julio de 2015 22:38 GYT

* Trading houses, construction equipment stocks underperform
    * Inbound tourism stocks fall on worries about fewer Chinese
    * Falls in European shares spook investors - analyst

    By Ayai Tomisawa
    TOKYO, July 8 (Reuters) - Japanese stocks fell sharply on
Wednesday morning as a massive selloff in China's stock markets
raised fears of a damaging blow to the world's second-largest
economy - a major export market for Japan.   
    Companies with high exposures to China underperformed, with
construction equipment makers Komatsu Ltd and Hitachi
Construction Machinery falling 3.4 percent and 2.2
percent, respectively. 
    Trading houses, whose businesses rely on demand for
commodities, were also lower, with Mitsubishi Corp and
Sumitomo Corp declining 2.5 percent and 4.0 percent,
    The Nikkei share average extended their opening
losses and fell 1.6 percent to 20,042.25 in midmorning trade
after the Chinese markets plunged at the starting bell.
     The Shanghai composite index dived 8 percent,
triggering a rush to buy the safe haven yen.
    "Investors want to unload stocks related to China right
now," said Mitsushige Akino, chief fund manager at Ichiyoshi
Asset Management, adding inbound tourism-related stocks were
also being hit due to worries that there may be fewer Chinese
tourists to Japan.
    Don Quijote Holdings, a discount store operator
which was benefiting from a rise in sales from Chinese tourists,
dropped 3.6 percent. Department store Isetan Mitsukoshi Holdings
 tumbled 3.8 percent and cosmetics maker Shiseido Co
 shed 2.2 percent.
    Investors also continued to fret about Greece, which
launched a desperate bid to win fresh aid from sceptical
creditors at an emergency euro zone summit billed as the last
chance for Athens to cut a rescue deal.
    "The majority of investors were optimistic that there would
be no major repercussion to the global market from the Greece
woes, but continuous falls in European shares are worrisome,"
said Hikaru Sato, a senior technical analyst at Daiwa
    German Chancellor Angela Merkel said there were only days
left to secure a deal, while Greek officials denied suggestions
that Athens had not put forward new proposals for the emergency
summit, held two days after Greek voters rejected conditions for
a new bailout in a referendum.    
    The broader Topix fell 1.8 percent to 1,607.18 and
the JPX-Nikkei Index 400 dropped 1.9 percent to

 (Editing by Shri Navaratnam)