Japanese Market Plunge 4%

(RTTNews) - Adding to the sharp losses in the previous session, the Japanese stock market is now trading sharply lower on Friday, following the broadly negative cues from global markets overnight. The benchmark Nikkei 225 is falling more than 4 percent to well below the 36,600 level, with weakness across all sectors led by index heavyweights, technology and financial stocks.

Traders react to the Bank of Japan's hawkish shift in monetary policy and the release of weak economic data from the U.S., Europe and China.

The benchmark Nikkei 225 Index is losing 1,609.95 points or 4.22 percent to 36,516.38, after hitting a low of 36,107.29 earlier. Japanese stocks closed sharply lower on Thursday.

Market heavyweight SoftBank Group is losing almost 6 percent and Uniqlo operator Fast Retailing is declining 1.5 percent. Among automakers, Honda is losing more than 2 percent and Toyota is also down more than 2 percent.

In the tech space, Advantest is declining more than 7 percent, while Tokyo Electron and Screen Holdings are sliding more than 10 percent each.

In the banking sector, Mitsubishi UFJ Financial is plunging almost 8 percent, Mizuho Financial is declining almost 7 percent and Sumitomo Mitsui Financial is sliding more than 7 percent.

Among major exporters, Mitsubishi Electric is declining almost 6 percent, Canon is losing almost 3 percent, Sony is slipping more than 5 percent and Panasonic is down almost 1 percent.

Among other major losers, Daiwa Securities is plummeting more than 16 percent, while Socionext, Ebara, Dai-ichi Life and Isetan Mitsukoshi are plunging more than 9 percent each. Mitsui & Co., AGC and Mitsui Chemicals are sliding almost 9 percent each, while Fuji Electric, Lasertec and Hitachi are sliding more than 8 percent each, while NEC is declining almost 8 percent.

Conversely, NH Foods is soaring more than 8 percent and Konami Group is surging almost 8 percent.

In economic news, the monetary base in Japan was up 1.0 percent on year in July, the Bank of Japan said on Friday exceeding expectations for a gain of 0.9 percent and accelerating from 0.6 percent in June. Banknotes in circulation were down 0.9 percent on year, including a 1.5 percent drop in coins in circulation. Current account balances rose an annual 1.5 percent, including a 3.6 percent jump in reserve balances. The adjusted monetary base was up 0.8 percent after slumping 6.5 percent a month earlier.

In the currency market, the U.S. dollar is trading in the lower 149 yen-range on Friday.

On Wall Street, stocks moved sharply lower over the coursed the trading day on Thursday after extending yesterday's rally early in the session. The major averages all showed substantial moves to the downside.

The tech-heavy Nasdaq plunged 405.25 points or 2.3 percent to 17,194.15, the S&P 500 tumbled 75.62 points or 1.4 percent to 5,446.68 and the Dow slumped 494.82 points or 1,2 percent to 40,347,97

The major European markets also moved sharply lower on the day. While the U.K.'s FTSE 100 slumped by 1.0 percent, the French CAC 40 Index and the German DAX Index dove be by 2.1 percent and 2.3 percent, respectively.

Crude oil prices settled lower on Thursday on concerns about disappointing economic data and the outlook for oil demand. West Texas Intermediate Crude oil futures for September ended down $1.60 or about 2.05 percent at $76.31 a barrel.