Japan Nikkei tumbles 3% after Wall Street plunge

Headline indices of the Japan share market stumbled on Tuesday, 13 November 2018, with all Tokyo's 33 subindexes in the red following the overnight sell-off on Wall Street after a rout in tech stocks. In late afternoon trades, the 225-issue Nikkei index tumbled 525.16 points, or 2.36%, at 21,744.72. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 37.97 points, or 2.27%, to 1,633.98.

Shares of tech-sector declined on following heavy selling in US technology companies after deteriorating outlook for iPhone sales. Concerns about iPhone demand hurt the stocks of Japanese parts suppliers after Apple's supplier Lumentum Holdings Inc. cut its quarterly forecast. Apple's parts supplier Murata Mfg dropped 7%, Alps Electric fell 6.5%, THK slid 5.3%, and Japan Display dropped 7.6%, while other electronic parts makers also plunged, with TDK dropping 7.1% and Alps Electric plummeting 8.4%.

 

Shares of automakers sagged following news that the U.S. Commerce Department submitted draft recommendations to the White House onits investigation into whether to impose tariffs of up to 25percent on imported cars and parts on national security grounds. Toyota Motor Corp lost 3%, Nissan Motor Co dropped 2% and Honda Motor was down 3.2%.

CURRENCY NEWS: Japanese yen appreciated against greenback on Tuesday. The dollar fetched 113.63 yen in Asian trade, down from 113.85 yen in New York late Monday.

OFFSHORE MARKET NEWS: US stocks closed in negative territory on Monday, weighed by a notable drop in shares of Apple after iPhone parts supplier Lumentum cut its fiscal second quarter guidance, adding to recent concerns about iPhone demand. The Dow Jones Industrial Average fell 602.12 points, or 2.32%, to 25,387.18, the S&P 500 lost 54.79 points, or 1.97%, to 2,726.22 and the Nasdaq Composite dropped 206.03 points, or 2.78%, to 7,200.87.

European share market also closed down on Monday. The U.K.'s FTSE 100 Index dropped by 0.9% and 0.7%, respectively. The German DAX Index plunged by 1.8%.

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