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Japan Nikkei sinks on global sell-off

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Headline indices of the share market retreated on Thursday, 11 October 2018, as risk aversion selloff triggered on tracking overnight dive in European and U. S. markets overnight amid fear of rising U. S. interest rates, ongoing trade friction between the U. S. and China, and worries over global growth. Meanwhile, a stronger yen also took a toll on the shares. All TSE 33 issues declined, with shares in Mining, Products, Electric Appliances, Precision Instruments, Securities & Commodities Futures, and Machinery issues being notable losers. Around late afternoon trade, the 225-issue Nikkei stumbled 974.22 points, or 4.14%, at 22,531.82. The broader of all First Section issues on the tanked 64.67 points, or 3.67%, to 1,699.19.

Wall Street tumbled on Wednesday, with the and the Dow marking their biggest daily declines since Feb. 8 as markets were spooked by the prospect of rising interest rates.

The fall was driven by a rise in U. S. long-dated Treasury yields, which reinforced expectations of several interest rate hikes over the next 12 months and prompted investors to reassess equity valuations. Over the past few months, an intensifying trade war between the and has also hit risk assets on worries about global growth.

CURRENCY NEWS: appreciated around the 112 yen line against greenback on Thursday, amid safe haven currency demand after bitter Sino-U. S. trade war and worries over global growth sapped confidence.

OFFSHORE MARKET NEWS, US tumbled on Wednesday. Rising yields and lingering worries over the trade dispute between the US and were the main factors driving down share prices. Many investors sold shares in because higher US long-term interest rates raise companies' borrowing costs, eroding their corporate earnings. The plunged 831.83 points or 3.2% to 25,598.74, the Nasdaq plummeted 315.97 points or 4.1% to 7,422.05 and the tumbled 94.66 points or 3.3% to 2,785.68.

The major European markets ended lower on Wednesday. The U. K.'s slumped by 1.3%, while the French Index and the German DAX Index plummeted by 2.1% and 2.2%, respectively.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, October 11 2018. 09:46 IST