Japanese stock market fell, with Nikkei 225 declining to a two week low, after US financial saw the crisis. Ben S. Bernanke, Federal Reserve Chairman is producing a hint on quantitative easing. The reason behind the fall in Japan’s stock is the drop in retail sales.
Nissan, the Japanese automaker that sells almost three fourth of its sale from North America, slid 1.2%, even after its cost value aim was increased as per Credit Suisse Group. The retailers, Furukawa Electric gained the most while Yamada Denki Corp lost 4.1% in Nikkei 225 NKY after its aluminum division decided to take over Sumitomo Metal Industries.
Nikkei 225 dropped 1% to 8983.78 points at 3 p.m. (Tokyo), which is considered to be lowest point since August 15. Volume was 15% below a monthly average ahead of Bernanke’s speech that he is going to present tomorrow at Central Banker’s meeting in Wyoming. TPX index slid 0.8% to 743.79 points as their shares drooped, for that it gained last time. Investors are worried as US economic crisis may delay QE3; Yoshihisa Okamoto, who runs about $34billion at Mizuho Co. Investors said that buyers are not investing, not just because US economic data is good or bad, but also because they haven’t got a clean and full picture about crisis, until Chairman’s speech.
Topix recovered nearly 7% from last year’s lowest on June 4 and it would take few actions to prompt economic growth. Stocks for the Europe Stoxx 600 Index is 1.5, S&S P 500 Index is 2.2, while Standard and Poor 500 Index is valued at .3, which means it can be bought for less than the value of their assets. It gained 0.1% on domestic product, expanding the annual rate to 1.7%, which is 0.2% higher than the initial estimates.
The US economy is expected to increase gradually as retail sales and housing market is growing, said Federal, based on the survey conducted by them on 12 major cities. Nissan, which makes huge profit from North American customers, fell 1.2% to 741yen, even after Credit Suisse Association increased the stock price to 970yen. The launch of new models would boost the global market share, says Nissan. Toyo Tire and Rubber Corp slid 2.3% to 215yen that gets major profits from North America. The 0.8% fall in the earlier year is a major drop and Japanese traders fell after the country’s retail sales dropped more than predicted value.