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Nikkei drops to 4-month low on strong yen

Weak factory data cast a doubt on strength of US economy

Reuters Tokyo

Japan's Nikkei stock average fell 4.2% to a four-month low on Tuesday, as the yen's rise hurt sentiment after weaker-than-expected American factory data created worries about the US economy.

The benchmark Nikkei, extending its losing streak to a fourth day, ended 610.66 points lower at 14,008.47, the lowest closing since October 8. It was the biggest one-day percentage decline since June 2013.

The Nikkei fell decisively below its 200-day moving average, around 14,425, for the first time since November 2012 when the market started rallying on expectations of radical monetary easing.

The broader Topix index tumbled 4.8% to 1,139.27, with 4.233 billion shares changing hands, the highest since June 2013.

 

The JPX-Nikkei Index 400, an index launched this year comprised of firms with high return on equity and strong corporate governance, shed 4.7% to 10,330.02.

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First Published: Feb 04 2014 | 12:49 PM IST

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