Japan's Nikkei dips below key 38,000 mark; Toyota drops
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Japan's Nikkei share average dropped below the psychologically key 38,000 level for the first time this month on Monday, as a risk-off mood prevailed amid concerns about economic growth both at home and abroad.
The Nikkei ended the day down 1.8% at 38,102.44, after earlier falling as much as 2.2% to 37,956.49 for the first time since May 30.
The broader Topix skidded 1.7%. Almost all of the Tokyo Stock Exchange's 33 industry groups declined, led by a 3.5% slump for real estate. Only pharma managed a slight gain. "Basically, the Nikkei has been tracking pretty much sideways for a long time, and now it's being shaken a little by some worries about the economy," in Japan, the United States and Europe, said Kazuo Kamitani, an equities strategist at Nomura Securities, projecting a correction could run as far as 37,500. The Nikkei has mostly fluctuated some 500 points either side of 38,500 since late April, after hitting a record peak at 41,087.75 on March 22 and then dropping back as far as 36,733.06 a month later.
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Toyota Motor slid 2.6% amid continued fallout from a certification scandal, with car-related shares among the worst performing sectors.
The Nikkei ended the day down 1.8% at 38,102.44, after earlier falling as much as 2.2% to 37,956.49 for the first time since May 30.
Of the index's 225 components, 199 fell, while 25 rose and one was flat.
The broader Topix skidded 1.7%. Almost all of the Tokyo Stock Exchange's 33 industry groups declined, led by a 3.5% slump for real estate. Only pharma managed a slight gain. "Basically, the Nikkei has been tracking pretty much sideways for a long time, and now it's being shaken a little by some worries about the economy," in Japan, the United States and Europe, said Kazuo Kamitani, an equities strategist at Nomura Securities, projecting a correction could run as far as 37,500. The Nikkei has mostly fluctuated some 500 points either side of 38,500 since late April, after hitting a record peak at 41,087.75 on March 22 and then dropping back as far as 36,733.06 a month later.
Automakers and suppliers shed 2.6% on Monday.
National broadcaster NHK reported that Toyota would extend a production halt for affected models by at least an extra month to the end of July.
Toyota Chairman and family scion Akio Toyoda faces a vote against his re-election at an annual shareholder meeting on Tuesday.
Suzuki Motor dropped 3.6% and Mazda lost 3.7%.
Chip-related shares also retreated, with Tokyo Electron off 2.5% and Advantest tumbling 3.7%.
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