TOKYO: The Nikkei Stock Average fell to its lowest level in more than eight months amid continuing concerns over the Chinese economic slowdown and its potential impact on the global economy.
The benchmark index ended Tuesday’s trading down 714.27 points, or 4.1 per cent, at 16930.84, after falling as low as 16901.49 — the lowest since January 16 — during the session.
The Tokyo stock market is likely to remain volatile with a downward bias for a while, said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management. He added that the Nikkei is likely to find support near this year’s low of 16592.57.
Among individual stocks, Mitsui O.S.K. Lines Ltd was hit hard by news that Daiichi Chuo Kisen Kaisha filed for bankruptcy protection after suffering from losses amid the European financial crisis and slower Chinese economy.
Shares of Mitsui O.S.K., which holds a 21.8 per cent stake in the bankrupt company, dropped 7.4 per cent to Y288.
Mitsui O.S.K. said it plans to post about a Y25 billion ($US209.4 million) special loss in an earning report due October 30.
The Tokyo Stock Exchange said the Daiichi Chuo Kisen’s shares will be delisted from the bourse’s first section on Ocober 30. Trading of its shares was halted for Tuesday.
