Nikkei dives 7.3% , China worries spark worst rout in two years

 

The Nikkei share average plunged 7.3% on Thursday, its biggest one-day percentage drop in two years after weak Chinese factory data rattled investors, prompting them to take profits from a recent rally buoyed by massive Bank of Japan stimulus measures.

 

The Nikkei ended 1,143.28 points lower at 14,483.98, a two-week low. It was the 11th-largest point drop on record.

 

The Osaka Securities Exchange briefly suspending trade in Nikkei futures in the afternoon due to steep declines.

 

Trading was volatile. The benchmark had climbed to a 5-1/2-year high earlier in the session.

 

The broader Topix index sank 6.9% to 1,188.34, with a record high 7.66 billion shares changing hands.

 

As stocks dropped sharply, investors sought safety in government bonds, with the 10-year Japanese government bond yield down 6 basis points at 0.825%.

 

The 10-year yield hit 1.00% in the morning session, its highest since early April last year.