Japan's Nikkei 225 Average Falls to 16-Month Low on U.S. Home Sales Data
Aug. 24 (Bloomberg) -- Jesper Koll, head of equity research at JPMorgan Chase & Co., talks about the outlook for Japanese stocks. Koll also discusses the prospects for Bank of Japan intervention in the foreign-exchange market, and the nation's government. Koll speaks from Tokyo with Bloomberg's Rishaad Salamat. (Source: Bloomberg)
Japanese stocks fell, dragging the Nikkei 225 Stock Average to a 16-month low, as a record plunge in U.S. home sales added to evidence the global economy is faltering.
Honda Motor Co., which receives 84 percent of its revenue abroad and Toyota Motor Co., the world’s largest carmaker, fell at least 2.4 percent. Canon Inc., the world’s largest camera maker, lost 2.7 percent amid speculation the yen’s appreciation against the dollar and euro will hurt Japan’s export earnings. Bank of Iwate Ltd., a regional lender, tumbled 11 percent on plans to sell shares. Stocks also fell as a government report today showed Japan’s export growth slowed.
“No one wants to take risks right now,” said Tomomi Yamashita, a fund manager in Tokyo at Shinkin Asset Management Co., which oversees $6 billion. “The effects of the stimulus measures are waning in the U.S., and fears about the global economic recovery are increasing. The market can’t help but be worried.”
The Nikkei 225 Stock Average dropped 1.7 percent to 8,845.39 in Tokyo, its lowest close since April 30, 2009. The broader Topix index declined 1.3 percent to 807.31, with almost three stocks retreating for every one that rose.
To contact the reporter on this story: Anna Kitanaka in Tokyo at akitanaka@bloomberg.net
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