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Market Update

Nikkei Plunges 2.7% on Global Slowdown Worries

Author: Hiruki Nakamura
Last Update: 12:59 PM ET January 14 2016

4:30 PM Tokyo Nikkei in Tokyo dropped 2.7% as markets in Asia extended losses. Investors turned cautious on the worries that the global economic growth may slow down on the persistent decline in energy prices and deepening deflation in China.

Stocks in Tokyo opened lower and market averages erased gains of yesterday after the Nikkei average declined nearly 3%.

The deepening malaise in crude oil market fanned fears that China slowdown may spread to other economies in the region and then to developed economies.

The Nikkei 225 Stock Average declined 474.68 or 2.7% to 17,240.95 and the broader Topix index slumped 35.54 or 2.5% to 1,406.55.

The yen dropped against the U.S. dollar to 117.90.

Stocks in Review

Aderans Co Ltd declined 3.4% to 735 yen after the ready-made wigs maker reported net sales in the nine-month ending in November jumped 5% from a year ago to 58.86 billion yen.

Net in the period swung to a loss of 474 million yen compared to profit of 4.12 billion yen and diluted loss per share swung to 13.59 yen from diluted earnings per share of 112.43 yen in the same period a year ago.

Ichigo Inc soared 7.4% to 377 yen after the real estate developer said net sales in the nine-month ending in November surged 201.7% from a year ago to 44.50 billion yen.

Net income in the period jumped 225.4% to 11.60 billion yen compared to 3.56 billion yen and diluted earnings per share increased to 23.08 yen from 7.10 yen in the same period a year ago.

In the year, the company forecasted net sales to increase 14.7% to 49 billion yen and net income to advance 77.5% to 12 billion yen.

Mitsubishi UFJ Financial Group Inc slumped 2.4% to 683 yen after the financial services provider agreed to acquire 20% stake in Philippine-based lender Security Bank Corp. for about $773 million or 36.9 billion pesos.

Sumitomo Corporation plunged 5.8% to 1,123.50 yen after the trading company withdrew its full-year forecast to book 77 billion yen charge for the third-quarter ending in December related to its nickel project in Ambatovy of Madagascar.

The company also withdrew earnings forecast for the year through March from the earlier estimated net profit of 230 billion yen.

The company launched its operation of battery power storage plant that was constructed in Hamilton County, Ohio in April 2015.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc