TOKYO: Japanese stocks fell for a third day amid concerns about Chinese economic growth and as investors weighed minutes from the Federal Reserve.
Shiseido Co., which gets about 22 percent of its sales from Asia excluding Japan, slumped 5.1 percent. Oil explorers and metal producers fell after commodity prices extended a decline. SoftBank Group Corp. gained 2.2 percent after President Nikesh Arora said he’ll buy about 60 billion yen ($484 million) of the carrier’s shares.
The Topix index lost 1.5 percent to close at 1,623.88 in Tokyo, with about seven shares falling for each that gained. Volume on the measure was about 7.6 percent below the 30-day average. The Nikkei 225 Stock Average slipped 0.9 percent to 20,033.52.
“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 1.9 percent, while Hong Kong’s Hang Seng Index slumped 2.1 percent. The gauge has fallen 20 percent from its peak in April to meet the common definition of a bear market.
Shiseido, which counts China, Korea, Southeast Asia and Australia as its biggest sales markets outside of Japan, lost 5.1 percent. Robotics maker Fanuc Corp., which gets more-than half its revenue from Asia excluding Japan, slumped 1.6 percent.
