Tuesday, August 24, 2010

Nikkei drops below 9,000, first time since May 2009

TOKYO: Japan's Nikkei average dropped below the closely watched 9,000 point mark for this first time in 15 months on Tuesday after U.S. stocks weakened, with a pick-up in corporate takeover activity failing to soothe concerns that the recovery is stalling.

The benchmark Nikkei slipped 1.5 percent to 8,983.93 points shortly after the opening, its lowest since May 2009, while the broader Topix declined 1.2 percent to 814.68.

The 9,000 to 9,100 area had been strong support for the Nikkei index since last year, halting several recent attempts to break through on the downside, but worries about Japan's economic recovery, heightened by the yen's climb this month to a 15-year high against the dollar, put persistent pressure on stocks.

In'' Sydney, Australian stocks fell 0.6 percent early on Tuesday as uncertainty over the country's election outcome and concerns over the health of the global economy kept investors sidelined.

Top brewer Foster's Group, a potential takeover target, slipped 2.9 percent. It reported net profit before one-off items ahead of expectations and said the demerger of its wine business was on track.

Foster's shares rose to a 2-'' year high on Monday after sources said brewing groups SABMiller and Asahi Breweries are looking at Foster's Group's'' beer operations.

The S&P/ASX 200 index fell 25.39 points to 4,403.60. It ended almost unchanged on Monday as the top miners gained on bets that a new mining tax may be dead in the wake of an inconclusive Australian election, offsetting losses elsewhere.

New Zealand's benchmark NZX 50 index was marginally lower at'' 3,013.68. - Reuters

''


No comments:

Post a Comment