Nikkei and Asian Markets Drop

Hiruki Nakamura
08 Nov, 2013
New York City

Investors in Japan reacted to international news and a sharp fall in Asian markets. Nikkei declined 1% after the latest U.S. growth data increased earlier than expected Fed tapering possibilities.

[R]4:30 PM Tokyo – Investors in Japan reacted to international news and a sharp fall in Asian markets. Nikkei declined 1% after the latest U.S. growth data increased earlier than expected Fed tapering possibilities.[/R]

Market indexes in Japan and in Asia fell sharply on the worries that faster economic growth in the U.S. will encourage Federal Reserve to bring forward its tapering time table.

U.S. economic growth in the third quarter to September accelerated to 2.8% annual rate from 2.5% in the second quarter.

The increase in economic growth was largely driven by a surge in real estate construction and the build-up of inventories, which is generally followed by a slump in growth in the following quarter.

The Nikkei 225 Stock Average dropped 141.64 or 1% to 14,086.80 and the Topix fell 8.31 to 1,176.42.

The yen declined to 98.12 against one dollar.

Markets around Asia declined sharply. Hang Seng Index in Hong Kong declined 0.6% to 22,744 and the Sensex index in Mumbai declined 0.8% to 20,666.

Indexes in Bangkok plunged 1.6%, in Jakarta declined 0.4%, in Seoul declined 1% and in Sydney fell 0.4%.

Stocks in Review

Toyota Motor Corp slipped 70 yen to 6,200 yen, Honda Motor Co. slid 30 yen to 3,870 yen and Nissan Motor Co Ltd fell 4 yen to 883 yen.

Sony declined 45 yen to 1,649 yen.

Softbank Corp dropped 200 yen to 7,280 yen and Fast Retailing Co. plummeted 1,150 yen to 30,600 yen.

Tokyo Electric Power Co Inc slipped 1.1% to 520 yen after the electric power supplier plans to separate the used fuel from the wrecked Fukushima Dai-Ichi nuclear.