Japan Nikkei Index Drops Another 5 Percent

Japan’s Nikkei index dived a further 5% on Thursday to hit a five-week low, amid predictions of a bigger correction from some analysts.

The fall means the Nikkei has lost 8.3% since reaching a five-and-a-half-year high just a week ago.

Trading in Tokyo has been volatile amid concerns over global growth and the future of US stimulus measures.

Japanese government officials have played down the significance of the falls, suggesting they are “temporary”.

“Share prices appear to have been undergoing temporary adjustment over the past week,” Japan’s chief cabinet secretary, Yoshihide Suga, told reporters.

“A rise in share prices over the past month has been extremely rapid… In that regard, it would be unnatural if adjustment did not occur.”

via BBC

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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