TOKYO: Japanese stocks fell for a third day amid concerns about Chinese economic growth and as investors weighed minutes from the Federal Reserve.
Nippon Steel & Sumitomo Metal Corp., a Toyota Motor Corp. supplier, dropped 1 percent after a report it agreed to cut prices for the automaker. Oil explorers fell after the price of crude extended its drop. SoftBank Group Corp. gained 3 percent after President Nikesh Arora said he’ll buy about 60 billion yen ($483 million) of the carrier’s shares.
The Topix index lost 0.6 percent to 1,638.05 as of 12:42 p.m. in Tokyo, with about twice the number of shares falling as rising. Volume on the measure was about 10 percent below the 30-day intraday average. The Nikkei 225 Stock Average slipped 0.2 percent to 20,190.51.
“The uncertain outlook surrounding China and the nearing U.S. rate hike is weighing on the market,” said Soichiro Monji, chief strategist at Tokyo-based Daiwa SB Investments Ltd., which oversees 5.8 trillion yen. “With many investors still away on summer break and with volumes low, small selling is compounding the drop.”
China’s currency devaluation continued to roil emerging-market assets, with concern over the impact of a Chinese slowdown on global growth fueling a rout in commodities.
The MSCI Emerging Markets Index sank a fifth day Thursday, headed for its weakest level since October 2011. China’s Shanghai Composite Index dropped 0.4 percent, while Hong Kong’s Hang Seng Index slumped 1.2 percent. The gauge has fallen 20 percent from its peak in April to meet the common definition of a bear market.
