TOKYO: Tokyo shares dropped 2.1 percent Friday morning as a stronger yen dented exporters, following a global equities sell-off driven by fears over the health of the world economy.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange fell 420.59 points to 19,612.93 by the break, while the Topix index of all first-section shares was down 2.46 percent, or 39.87 points, to 1,584.01.
“The overnight weakness in global markets is making people nervous,” said Angus Gluskie, managing director at White Funds Management in Sydney.
Investor jitters have spiked on concerns that China s slowdown would drag on global growth, with currency traders moving into the yen, which is seen as a safe-haven in times of turmoil and uncertainty.
The dollar weakened to 123.04 yen 123.38 yen in New York, a negative for shares of Japanese exporters.
Dealers said markets remained under pressure from uncertainty about China after the shock devaluation of the yuan last week added to fears the world s second-biggest economy is slowing more than thought.
Stoking concerns, an independent survey on Friday showed China s manufacturing activity slumped to a 77-month low in August.
