Japanese Market Tumbles

The Japanese stock market is losing more than 3 percent on Wednesday following the overnight sell-off on Wall Street and on a stronger safe-haven yen. Disappointing corporate earnings results, worries about trade wars and global economic growth weighed on investor sentiment.

The benchmark Nikkei 225 Index is losing 775.61 points or 3.51 percent to 21,315.57, after falling to a low of 21,282.14 earlier. Japanese stocks eked out modest gains on Wednesday.

The major exporters are mostly weak. Sony is losing more than 5 percent, Canon is declining more than 2 percent and Mitsubishi Electric is down almost 3 percent, while Panasonic is rising 1 percent.

In the tech sector, Advantest is falling almost 8 percent and Tokyo Electron is declining more than 4 percent.

Among auto makers, Honda is lower by almost 3 percent and Toyota is declining more than 2 percent. In the banking sector, Mitsubishi UFJ Financial is falling almost 3 percent and Sumitomo Mitsui Financial is down more than 2 percent.

In the oil space, Japan Petroleum is lower by more than 3 percent and Inpex is losing more than 1 percent.

Among the worst performers, Taiiyo Yuden is lower by more than 6 percent, while Screen Holdings and Yokiogawa Electric are declining almost 6 percent each.

In economic news, the Bank of Japan said that producer prices in Japan were up 1.2 percent on year in September – matching expectations and down from 1.3 percent in August. On a monthly basis, producer prices added 0.1 percent following the flat reading in the previous month.

In the currency market, the U.S. dollar is trading in the upper 111 yen-range on Thursday.

On Wall Street, stocks showed a substantial move back to the downside on Wednesday, with the Dow dropping to its lowest closing level in over three-months, while the Nasdaq and the S&P 500 tumbled to five-month closing lows. The renewed selling pressure on Wall Street largely reflected amid another negative reaction to the latest batch of earnings news from several big-name companies and a report from the Commerce Department showing a steep drop in new home sales in the month of September.

The Dow plunged 608.01 points or 2.4 percent to 24,583.42, the Nasdaq nosedived 329.14 points or 4.4 percent to 7,108.40 and the S&P 500 plummeted 84.59 points or 3.1 percent to 2,656.10.

The major European markets also ended mixed on Wednesday. While the U.K.’s FTSE 100 Index inched up by 0.1 percent, the French CAC 40 Index dipped by 0.3 percent and the German DAX Index slid by 0.7 percent.

Crude oil futures closed higher on Wednesday despite the U.S. Energy Information Administration’s report that showed U.S. crude inventories rose for a fifth straight week. WTI crude rose $0.39 or 0.6 percent to close at $66.82 a barrel on the New York Mercantile Exchange.