TOKYO: Japanese stocks fell for a second day after the Topix index posted its worst monthly loss in three years, as confidence waned that China will be able to prop up its markets amid slowing economic growth. Toshiba Corp. slid after saying it found new accounting problems.
Nisshin Steel Co. slumped 4.2 percent after Nomura Holdings Inc. cut its target price on the steel producer. Topcon Corp. plunged 2.9 percent after Toshiba said it will sell its stake in the medical-equipment maker. Toshiba slid 3.7 percent after saying it uncovered 10 new cases of accounting irregularities. Pioneer Corp. jumped 5 percent after a report the autoparts maker has developed an inexpensive optical system for self-driving cars.
The Topix slipped 2.1 percent to 1,504.58 as of 12:38 p.m. in Tokyo, after Monday capping its biggest monthly plunge since May 2012. The Nikkei 225 Stock Average fell 2 percent to 18,516.98. The yen traded gained for a second day, adding 0.4 percent to 120.76 per dollar. The official gauge of China’s manufacturing industry fell to the lowest reading in three years as interest-rate cuts failed to revive old growth drivers.
“Investors are concerned about the strength of the global economy,” said Ayako Sera, a Tokyo-based strategist at Sumitomo Mitsui Trust Bank Ltd. “Even though oil rebounded, stocks are still dropping, which shows investors don’t have confidence.”
