Nikkei Drops 2.9% in Asia-wide Sell-off

Hiruki Nakamura
21 Aug, 2015
New York City

Nikkei average in Japan and market indexes in Tokyo dropped following deepening losses in New York and Europe. Commodities also extended losses in the year after crude oil and copper flirted with new six-year lows. Nikkei dropped 2.9% today and plunged 5.3% in the week.

[R]4:30 PM Tokyo – Nikkei average in Japan and market indexes in Tokyo dropped following deepening losses in New York and Europe. Commodities also extended losses in the year after crude oil and copper flirted with new six-year lows. Nikkei dropped 2.9% today and plunged 5.3% in the week.[/R]

Markets in Tokyo and in Asia accelerated weekly decline following weak market conditions in Europe and New York.

S&P 500 and Nasdaq indexes dropped more than 1% in overnight trading on the growing worries that valuation are ahead of economic fundamentals and uncertainty about the rate hike timing.

In addition, euro zone faced another crisis after Greece’s prime minister resigned and paved a path for election as early as in two months.

The Nikkei 225 Stock Average declined 597.69 or 2.9% to 19,435.83 and the broader Topix index plummeted 50.87 or 3.1% to 1,573.01.

For the week, Nikkei 225 plunged 5.3%.

The yen eased to 122.92 against a dollar.

Stocks in Review

Kumiai Chemical Industry Co., Ltd slumped 2.3% to 960 yen after the Nikkei news reported pesticide maker’s sales for the nine-month ending in July to jump 9% to 50 billion yen and operating profit to soar 9% to 3.5 billion yen.

The company is scheduled to release nine-month results on September 3.

Mitsubishi Motors Corporation declined 3.1% to 991 yen after the Nikkei daily said passenger vehicles maker’s operating profit for the year ending March 2016 forecasted to decline 8% to 125 billion yen.

The company plans to sell-off its Illinois-based plant by the end of November.

Nitori Holdings Co Ltd slipped 2% to 10,090 yen after the furniture and interior goods seller plans to set up a subsidiary company to manufacture furniture in Ba Ria Vung Tau province in Southern Vietnam with an estimated cost of 2.7 billion yen.

The products will be shipped to Japan, Taiwan and China.

Sapporo Holdings Ltd dropped 2.4% to 491 yen and the alcohol drink manufacturer said it will sell its wines in Singapore on a trial basis from next month.