Home » Japan’s Nikkei Drops to 2-Month Low Over U.S. Financial Uncertainties

Japan’s Nikkei Drops to 2-Month Low Over U.S. Financial Uncertainties

Japan’s benchmark Nikkei stock index closed lower on Wednesday, tracking losses in the U.S. market amid uncertain sentiment over the possible downgrade of U.S. banks.

The 225-issue Nikkei Stock Average lost 472.07 points, or 1.46 percent, from Tuesday to close the day at 31,766.82, the lowest level in about two months.

The broader Topix index, meanwhile, finished 29.47 points, or 1.29 percent, lower at 2,260.84.

Fitch Ratings warned on Tuesday that dozens of U.S. banks, including JPMorgan, the largest bank in the country, could be at risk of sweeping rating downgrades, which led to losses of bank shares.

In the Tokyo market, moves to avoid investment risks prevailed, and a wide range of stocks were sold. Bank shares such as Mitsubishi and UFJ saw significant declines.

On the Prime Market, decliners were led by oil and coal products, wholesale trade, and mining shares.

Issues that fell outpaced those that rose by 1,425 to 360, while 50 ended the day unchanged.

The turnover on the third trading day of the week is estimated at 3.14 trillion yen (21.6 billion U.S. dollars).

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