Nikkei Drops to Post Fukushima Low

The Nikkei 225 finished its worst trading week since March 2011 on Friday as stocks sank to six-month lows, with analysts highlighting a change in sentiment towards Japan’s benchmark index.

Stocks slipped 2.38 percent on Friday, dropping below 14,000 points for the first time since October. On Wednesday the blue-chip index lost 2.1 percent with hefty gains also seen earlier in the week. With a weekly fall of 7.33 percent it was the worst trading week since the nuclear disaster at Fukushima in 2011 which followed an earthquake and tsunami on the east coast of the country.

The losses were accentuated by a selloff in momentum stocks on the other side of the Pacific Ocean. Momentum stocks are fast-rising stocks which can unexpectedly reverse when investors fear they have overshot and a bubble is brewing. In the U.S. on Thursday, high-flying technology and biotech shares led the declines as the Nasdaq Composite posted its worst session in more than two years.

via CNBC

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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