Date: Tuesday 29 Jun 2010
Japanese stocks reversed early gains, extending yesterday’s losses to leave the Nikkei near a three-week low as a strong yen hurt exporters.Camera company Canon and car companies like Honda, Toyota and Nissan were behind a 123-point decline in the leading index to 9,570. It’s not been that low since 10 June.
Investors are also nervous ahead of some key economic reports out later this week. Volume remains thin, having hit a 4-month low Monday in anticipation of Thursday’s quarterly Tankan survey and US jobs data out Friday.
The Nikkei is heading for its worst quarter since Lehman’s collapse in 2008. It is currently down 12% compared with just 2% in the three months to December 2008.
Over in Hong Kong, the Hang Seng fell almost 470 points, or over 2%, at one stage with financials among the weakest performers.Meanwhile, traders blamed selling to fund investment in the upcoming Agricultural Bank of China initial public offering (IPO) for a 4% plunge in the Shanghai Composite Index.
It dropped to 2,427, a 14-month low, as selling pressure forced the index through support at 2,500.
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