TOKYO: Japanese stocks fell for a second day, extending a global equities slump spurred by a rout in commodities. Insurers led declines, while consumer lenders gained.
The Topix index dropped 0.7 percent to 1,558 as of 12:56 p.m. in Tokyo, headed for its lowest closing level in a month. The Nikkei 225 Stock Average tumbled 0.9 percent to 19,319. Global equities suffered their worst day in almost a month on Tuesday as oil lingered at its lowest level since 2009 while iron-ore prices plumbed new lows.
“With oil this cheap, the finances of oil-producing nations will be in a tough spot,” said Chihiro Ohta, general manager of investment information at SMBC Nikko Securities Inc. in Tokyo. “For Japanese stocks especially, we’re in a stage of profit taking.”
U.S. crude traded at about $38 a barrel after sliding to as low as $36.64 on Tuesday as OPEC’s decision to effectively abandon a limit on production continued to reverberate through markets.
Steel producer JFE Holdings Inc. dropped 1.8 percent following a 4 percent slide on Tuesday. Komatsu Ltd. slid 0.5 percent, adding to Tuesday’s 2.1 percent drop, after the world’s second-largest maker of mining and construction equipment said it faces another tough year ahead as falling commodity prices cool customers’ investment plans.
