Tokyo Nikkei stock index briefly fell 2% amid real estate fears in China
TOKYO (Kyodo) – Tokyo shares opened sharply lower on Tuesday as the Nikkei benchmark slumped more than 2% initially as concerns over a possible default by Chinese property developer Evergrande Group rocked markets American and European fellows overnight.
The Nikkei fell below 30,000 for the first time in nearly two weeks on an intraday basis. In the first 15 minutes of trading, the 225-issue Nikkei Stock Average lost 501.87 points, or 1.65%, as of Friday to 29,998.18. Japanese financial markets were closed Monday for a national holiday.
The largest Topix index of all the Tokyo Stock Exchange’s first section issues fell 39.39 points, or 1.88%, to 2,060.78.
The declines were mainly attributable to problems with machinery, securities firms and shipping.
As the mood turned to risk aversion, investors also sought out the Japanese yen, seen as a safe haven. The US dollar remained weak in the lower 109 yen area, hitting 109.43-44 yen at 9 a.m., against 109.33-43 yen at 5 p.m. Monday in New York.
The euro was listed at $ 1.1726-1730 and 128.32-33 yen against $ 1.1722-1732 and 128.21-31 yen in New York late Monday afternoon.