Nikkei tumbles on fresh China worries, steel sector hit hard
By Joshua Hunt
TOKYO Nov 2 (Reuters) - Japanese stocks slipped on Monday after twin manufacturing surveys showed that China's economy remains shaky despite a raft of stimulus measures which hit businesses exposed to the Asian giant.
The Nikkei share average tumbled 2.1 percent to 18,683.24.
Japan's iron and steel sector, which has significant exposure to China, tumbled 4.4 percent.
The sector was weighed down heavily by Kobe Steel Ltd , which shed 6.5 percent after announcing on Friday that it would cut its production estimates amid falling export prices and slower-than-expected domestic demand. Rivals JFE Holdings and Nippon Steel & Sumitomo Metal made similar announcements on Thursday and extended their losses, plunging 5.6 percent and 5.5 percent respectively.
Trading was also influenced by corporate earnings related news and by profit taking after last week's gains. Nitto Denko Corp gained 5.4 percent after announcing strong April-September earnings and a mid-year dividend.
The broader Topix shed 2 percent to close at 1,526.97 with all of its 33 subindexes in negative territory.
The JPX-Nikkei Index 400 fell 2.1 percent to 13,702.71. (Reporting by Joshua Hunt and Ayai Tomisawa; Editing by Shri Navaratnam)
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