Japanese stocks dropped to a three-week low on Wednesday afternoon, widening earlier losses, as a slide in Chinese shares raised concerns about the stability of China’s economy.
The Nikkei share average dropped 1.3 per cent to 20,286.73 after falling to as low as 20,254.26 in early afternoon trade, the lowest since July 29. The index fell below its 25-day moving average of 20,561.31.
The CSI300 index fell 2.2 per cent, while the Shanghai Composite Index declined 3.2 per cent, extending their sharp losses from the day before.
“Investors are nervous about the drops in the Chinese market which are affecting investment sentiment in overall Asia, including Japan,’’ said Hikaru Sato, senior technical analyst at Daiwa Securities.
Toshiba Corp outperformed, jumping 8.0 per cent after announcing a new board to improve corporate governance.
The broader Topix dropped 1.1 per cent to 1,653.52 and the JPX-Nikkei Index 400 declined 1.2 per cent to 14,879.43.