Tokyo stocks fall this morning after IMF lowered growth estimates
TOKYO (Kyodo) – Tokyo stocks fell in volatile trading on Wednesday morning, driven by concerns about slowing global growth after the International Monetary Fund lowered estimates for the Japanese and global economies for 2021.
The 225-number Nikkei Stock Average fell 61.62 points, or 0.22%, from Tuesday to 28,168.99. The larger Topix index of all issues in the first section of the Tokyo Stock Exchange fell 4.52 points, or 0.23%, to 1,978.16.
The declines were led by shipping, banking, and iron and steel issues.
The US dollar narrowly traded in the 113 yen area after briefly hitting an almost three-year high of 113.78 yen in New York City.
At noon, the dollar hit 113.40-41 yen against 113.56-66 yen in New York and 113.29-30 yen in Tokyo on Tuesday at 5 p.m.
The euro was listed at $ 1.1553-1558 and 131.01-05 yen against $ 1.1525-1535 and 130.95-131.05 yen in New York and $ 1.1555-1556 and 130.91- 95 yen in Tokyo late Tuesday afternoon.
The Nikkei benchmark briefly fell more than 200 points to below 28,000 after the IMF forecast weaker global growth for 2021 on Tuesday while also lowering its forecast for the US and Japanese economies amid the pandemic of coronavirus.
âInvestor sentiment has been weighed down by the prospect of slowing global growth,â said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co.
Stocks rebounded at one point before ending the morning session lower. The morning news that the US House of Representatives approved a short-term increase in the country’s borrowing limit provided some support to the market, as the move avoided a potential default that could have occurred as early as next week, brokers said.
“The downside buying started when the Nikkei fell around the 28,000 line, with investors expecting the US debt ceiling problem not to get worse,” Fujito added.
On the first section, declining shows outnumbered advances from 1,359 to 715, while 109 ended the morning session unchanged.
Steelmakers and shipping companies have been hit by the slowing growth outlook.
Kobe Steel fell 10 yen, or 1.5%, to 659 yen while rival JFE Holdings slipped 18 yen, or 1.1%, to 1,673 yen.
Nippon Yusen lost 160 yen, or 2.1%, to 7,510 yen and Kawasaki Kisen fell 150 yen, or 2.9%, to 5,100 yen.