Japan’s Nikkei 225 briefly drops 4%, causing losses in Asian markets

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SINGAPORE – Stocks in Asia-Pacific fell on Monday as Japanese markets collapsed. Meanwhile, China has kept its key rate unchanged.

Japanese stocks led losses regionally, with the Nikkei 225 falling 4% in Monday’s trading. He then reduced some of those losses but still closed 3.29% lower at 28,010.93. The Topix index lost 2.42% to end its trading day at 1,899.45.

Losses were recorded across most sectors in Japan, with shares of automakers such as Nissan and Honda falling 4.07% and 3.93% respectively. Fanuc shares fell 5.62%. Among financials, shares of Mitsubishi UFJ Financial Group fell 2.72% and Mizuho Financial Group fell 2.25%.

“At this point, we’re probably in a waiting situation when it comes to most Japanese names,” Lorraine Tan, director of Asian equity research at Morningstar, told “Street Signs Asia” on Monday. CNBC.

“The Japanese market has had a good run recently over the past month,” she said, adding that valuations were near the “fair” – rather than “attractive” – ​​level.

Asia-Pacific markets are slipping

Elsewhere in Asia-Pacific, Hong Kong The Hang Seng Index fell 1.28% in its last hour of trading. Mainland China stocks closed higher as the Shanghai composite rose 0.12% to 3,529.18 and the Shenzhen component edged up 0.395% to 14,641.29.

South Korea’s Kospi lost 0.83% on the day to 3,240.79. Australian stocks fell with the S & P / ASX 200 shedding 1.81% to close at 7,235.30.

The largest MSCI index of Asia-Pacific stocks excluding Japan fell 1.29%.

“Markets continue to slump after the FOMC as concerns over rate normalization continue to contain risk sentiment,” analysts at Singapore’s OCBC bank wrote in a note dated Monday.

Last week, the US Federal Reserve raised its inflation expectations and brought forward the timing of its interest rate hikes, triggering a surge in the dollar index against a basket of its peers.

The US dollar index was at 92.151 after a recent rally from levels below 91.2.

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China announced Monday that the one-year loan prime rate (LPR) was held unchanged at 3.85% while the five-year LPR was also held at 4.65%. This was in line with the expectations of the majority of analysts in a snap poll by Reuters, which predicted no change in the prime rate on one-year loans as well as the five-year LPR.

Currencies and oil

the The Japanese yen was trading at 109.88 to the dollar, stronger than the levels above 110.5 against the greenback seen last week. The Australian dollar changed hands at $ 0.749, still struggling to recover after falling above $ 0.768 last week.

Oil prices were higher in the afternoon of trading hours in Asia, as international benchmark Brent crude futures rose 0.19% to $ 73.65 a barrel. US crude futures were up 0.25% to $ 71.82 per barrel.

– CNBC’s Patti Domm contributed to this report.

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