Japan Nikkei extends losses on global growth worries

Headline indices of the Japan share market closed down on Thursday, 07 March 2019, as risk aversion selloff triggered on renewed concerns about global growth after the Organisation for Economic Co-operation & Development (OECD) cut its forecasts for the global economy in 2019 and 2020, following on from previous downgrades in November, and warned that trade disputes and economic uncertainty over Brexit would hit world commerce and businesses. Total 28 subsectors out of 33 subsectors of the Tokyo Stock Exchange declined, with shares in Nonferrous Metals, Electric Appliances, Marine Transportation, Metal Products, Banks, and Machinery issues being notable losers. At closing bell, the 225-issue Nikkei Stock Average fell 140.80 points, or 0.65%, at 21,456.01. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 13.59 points, or 0.84%, at 1,601.66.

Wall Street stocks closed lower on Wednesday on the dimming outlook for economic growth and questions over US-China trade talks. Sentiment was dented by the Organisation for Economic Cooperation and Development on Wednesday, which cut its global growth forecast for 2019 to 3.3% from the prior 3.5%.

 

Mizuho dropped 2% after it slashed its full-year profit outlook by 86%, citing one-time restructuring costs of 680 billion yen ($6 billion) at its bank and brokerage units and an overhaul of its securities portfolio.

Renesas Electronics nosedived 15% to a daily limit-low of 584 yen after news that the automotive chipmaker plans to halt production at six plants in Japan for a total of up to two months this year. It was the biggest%age loser on the board.

CURRENCY NEWS: The Japanese yen appreciated against the dollar in the mid 111 yen zone on Thursday. The dollar was trading at 111.63 yen against 111.76 yen in New York on Wednesday.

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