Nikkei drops in choppy trade; investors on edge ahead of China data

lunes 7 de septiembre de 2015 22:01 GYT

* Short-sell ratio has stayed above 40 for the past 5 days

* Nomura stumbles after Barclays cuts rating

By Ayai Tomisawa

TOKYO, Sept 8 (Reuters) - Japanese stocks dropped in another choppy morning session on Tuesday as lingering worries over China's economic health offset revised data showing Japan's economy shrank less than expected.

Investors were on edge ahead of China's trade data, which could point to further weakness in the world's second-largest economy. The data are due out shortly.

China's exports were expected to drop 6.0 percent in August compared with a year earlier, after dipping 8.3 percent in July, a median forecast of 20 analysts polled by Reuters showed.

By mid-morning, the Nikkei dropped 0.3 percent to 17,808.99 after opening a tad higher.

"Japanese market's direction will likely depend on the China data today," said Takuya Takahashi, a strategist at Daiwa Securities. "The market does not have high expectations on the data. But since China's economy is the most focused thing now, we may see a drop of 200-300 points in the Nikkei if it disappoints the market seriously"

On the positive side, revised gross domestic product data for the second quarter showed that Japan's economy shrank less than expected although capital expenditure fell more than originally forecast.   Continuación...