Nikkei Tumbles in Largest Single-Day Loss of 2016
The Nikkei 225 crashed 632 points in today’s trade, closing down 3.7% at the finish.
In what is most likely a delayed reaction to weak Chinese GDP data released yesterday, every company listed on the index finished in the red today with Toyota (-3.23%), Japan Tobacco (-2.27%) and Softbank (-6.8%) taking the biggest losses. This constitutes the largest single-day loss in 2016 for the Nikkei, which investors had hoped was stabilizing after it finished up in yesterday’s session.
In Hong Kong, the HSI slid 714 points, down 3.64% in late afternoon trade. China exposed companies China Mobile and China Construction Bank led the blue-chip losses, both dropping over 3% for the day. Several prominent Hong Kong investment firms have seen double-digit percentage losses this year so far including Hong Kong Exchanges & Clearing (-12.5%) and China Overseas Land Investment (-15%).
Tomorrow gives us a glimpse into the state of the Japanese economy with the All Index data being released. Even positive data is unlikely to put a dent in the losses the Nikkei has endured so far this year, however, as the China slowdown continues to outweigh anything else, and Asian stocks across the region continue to plunge.
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