Nikkei Ends at 2 Week Low after Italian Referendum Rejection

The Nikkei index closed at a nearly two-week low Monday as uncertainty prevailed after Italian voters rejected proposed constitutional reform in a referendum, prompting Prime Minister Matteo Renzi to announce his resignation.

The 225-issue Nikkei Stock Average ended down 151.09 points, or 0.82 percent, from Friday at 18,274.99. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 11.02 points, or 0.75 percent, lower at 1,466.96.

Decliners were led by bank, service and real estate issues.

The Nikkei ended at its lowest level since Nov. 22 after the referendum result sparked worries about the prospects for stabilizing Italy’s shaky banking system and the potential impact on the European Union, brokers said.

“Renzi’s resignation weighed on sentiment as it will lead to a period of uncertainty about Italy’s financial system and the country’s banking sector,” said Chihiro Ota, general manager of investment research at SMBC Nikko Securities Inc.

Japanese shares widened losses before closing, with the Nikkei index briefly fal

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza