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.