Markets

Nikkei drops to 10-week low; automakers tumble on weaker-than-expected US sales

Reuters Tokyo | Updated on January 15, 2018 Published on April 04, 2017

nikkei

Japan's Nikkei share average fell on Tuesday to 10-week lows as the safe-haven yen rose and as automakers tumbled on weaker-than-expected US sales.

Financial stocks such as banks and insurers, which seek to boost returns from higher yielding US bonds, also lost ground after yields on 10-year US Treasury notes overnight fell to the lowest level since February 27.

The Nikkei dropped 0.9 per cent to 18,810.25 points, the lowest closing level since January 24.

The dollar extended overnight losses and was down 0.4 per cent at 110.51 yen after hitting 110.370, its lowest in a week, as investors are cautious before the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping, while the sentiment was soured by suspected suicide bombing in St. Petersburg, Russia.

The broader Topix dropped 0.8 percent to 1,504.54 and the JPX-Nikkei Index 400 declined 0.8 percent to 13,463.23. (Reporting by Ayai Tomisawa; Editing by Kim Coghill

Published on April 04, 2017
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