TOKYO: A global equity selloff spread to Japan, sending the Topix index toward its lowest close since January.
A gauge of shippers headed for its biggest drop in almost two years, leading losses among the 33 Topix industry groups, as Mitsui OSK Lines Ltd. plunged after Daiichi Chuo KK said it filed for bankruptcy protection. Mitsui OSK is the largest shareholder in Daiichi Chuo, which was halted from trading. Kobe Steel Ltd. sank the most on the Nikkei 225 Stock Average after cutting its annual profit forecast by more than half amid slowing sales in China. No shares advanced on the Nikkei 225.
The Topix dropped 3.7 percent to 1,384.97 as of 12:41 p.m. in Tokyo, with about 30 shares falling for each that rose. The Nikkei 225 slid 3.4 percent to 17,032.82. The yen rose 0.3 percent to 119.63 per dollar after strengthening 0.6 percent on Monday as investors fled risky assets. The Standard & Poor’s 500 Index tumbled 2.6 percent to a one-month low as commodity companies retreated after weak economic data from China and biotechnology shares plunged.
“The slowdown in China is spreading to other Asian economies, Brazil and Australia, and weakness in emerging countries could echo throughout the overall world economy,” said Toshihiko Matsuno, chief strategist at SMBC Friend Securities Co. in Tokyo. “We still don’t know when market fears will end about China’s slowdown, and because of this investors are turning to cash and safe assets.”
