Nikkei tumbles to 8-month low on fresh China worries, falling commodities
By Joshua Hunt
Sept 29 (Reuters) - Japan's Nikkei share average tumbled more than 2 percent to an 8-month low on Tuesday as fears about China's cooling economy pummelled shares of commodity and machinery firms.
The benchmark Nikkei index shed 2.8 percent by late morning to 17,155.85 points.
"There is a lot of red in Asian equity markets at the moment," said Martin King, co-managing director at Tyton Capital Advisors.
"Disappointing industrial profits in China continue to bolster concerns about growth and many investors are taking profits from the Nikkei and sitting in cash and alternatives, or repatriating capital to western markets in a perceived flight to quality."
Japan's shipping sector was hit hardest after the Nikkei business daily reported Daiichi Chuo Kisen, a mid-tier shipping company, was expected to apply for bankruptcy protection as early as Tuesday.
The news hurt shares of other shippers that suffer from weak demand, with the Topix sea transport subindex falling 6.2 percent.
Mitsui OSK Lines lost 7.7 percent and Kawasaki Kisen Kaisha fell 4.1 percent.
The news came as data showed on Monday that profits earned by Chinese industrial companies declined 8.8 percent, the biggest on-year fall since China began monitoring such data in 2011. Continuación...