Japan stocks fall to 2-week low on concerns about global economy, Fed

lunes 27 de julio de 2015 02:31 GYT

TOKYO, July 27 (Reuters) - Japan's Nikkei share average fell
to a two-week low on Monday, as drops in the U.S. and Chinese
markets plus weak commodity prices fuelled concerns about
slowing global growth.  
    Also denting sentiment was a Federal Reserve meeting, which
opens Tuesday and might take another step toward lifting U.S.
interest rates.
    The Nikkei share average dropped 1.0 percent to
20,350.10 points, the lowest closing since July 13.
    "It started from China," said Norihiro Fujito, senior
investment strategist at Mitsubishi UFJ Morgan Stanley
    The global economy started the second half of the year on
shaky ground with a private preliminary survey showing China's
factory sector contracted in July at the fastest pace in 15
months. Also, euro zone manufacturing was weaker than expected,
although U.S. activity picked up.
    On Monday, official data showed that profits at China's
industrial firms dropped 0.3 percent in June from a year
earlier, reversing a 0.6 percent rise in May. 
    "China's slowdown can cap demand for Japanese exporters as
well in the future, so we need to be careful," Fujito said.
    The broader Topix fell 1.1 percent to 1,637.90 and
the JPX-Nikkei Index 400 declined 1.0 percent to

 (Reporting by Ayai Tomisawa; Editing by Richard Borsuk)