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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