Nikkei falls to 7-week low as China market rout fans economy concerns

miércoles 8 de julio de 2015 00:55 GYT
 

TOKYO, July 8 (Reuters) - Japan's Nikkei share average fell
to a seven-week low on Wednesday as investors feared a
relentless selloff in Chinese shares could hurt Japanese
companies relying on strong demand from China.
    The Nikkei fell more than 2 percent to as low as
19,907.51 points, its lowest level since mid-May, as equity
prices around the world suffered from uncertainty over whether
Greece will stay in the euro zone.
    "Today is a 'China day'. This is going to affect the real
economy. Chinese people who had made fortunes on stocks should
have been spending a lot but that is likely to change," said
Seiki Orimi, senior investment strategist at Mitsubishi UFJ
Morgan Stanley Securities.
    Companies with high exposure to China led the losses, with
construction equipment makers Komatsu Ltd and Hitachi
Construction Machinery falling 5.0 percent and 3.4
percent, respectively.
    "The ripple effect from the market correction (in China's
economy)has yet to show up," wrote Bank of America Merrill Lynch
analysts in a note. "We expect slower growth, poorer corporate
earnings, and a higher risk of a financial crisis."
    As concerns about Chinese economy hit commodity prices,
trading houses, which have big commodities business, also
tumbled.
    Sumitomo Corp fell 4.2 percent while Mitsubishi
Corp 3.3 percent. 
    Itochu Corp fell 8.4 percent, taking an extra hit
from a Nikkei business daily article that its plan to buy a
stake in Bosideng International Holdings was rejected
by the Chinese apparel company's shareholders.
    Other casualties included tourism-related shares, which have
benefited from shopping sprees by a surging number of Chinese
tourists visiting Japan. Department store operator Isetan
Mitsukoshi fell 3.9 percent. 
    As Japanese cosmetic products are popular among Chinese
tourists, drug store operators and cosmetic companies were among
the worst-hit
    Drug-store operator MatsumotoKiyoshi Holdings fell
4.6 percent while cosmetics manufacturer Shiseido 
dropped 4.6 percent.
    Mainland Chinese shares fell sharply on Wednesday despite a
series of measures that Beijing has rolled out nearly daily for
the last two weeks to support share prices. The CSI 300 Index
 felling as much as 8 percent at one point.
    It has lost more than 30 percent from its seven-year peak
hit in mid-June.

 (Reporting by Hideyuki Sano; Editing by Kim Coghill)