Tokyo
stocks fell sharply Tuesday with the
Nikkei index ending at a roughly two-month low, extending its losing streak to six trading days, as oil prices slid and the yen's strength raised concerns about upcoming earnings reports.
The 225-issue Nikkei Stock Average ended down 390.45 points, or 2.42 percent, from Monday at 15,732.82. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 34.34 points, or 2.64 percent, lower at 1,268.37.
Every industry category on the main section lost ground led by banking, mining and securities issues.
The Nikkei's losing streak matched the six straight days of losses in early January amid a global market rout sparked by
China's
slowdown and a collapse in commodity prices.
On Monday in
New York
, crude oil futures fell to
$35.70 per barrel, a roughly one-month low. The yen's appreciation against the
U.S.
dollar weighed on investor sentiment, analysts said.
"The primary drivers for
Tokyo
shares are the yen's rise and the retreat in oil prices. The market has shifted to a risk-off mood," said
Masahiro Ichikawa, senior strategist at
Sumitomo Mitsui Asset Management Co.
While the heightened concern about the global economy seen earlier in the year has receded, with the
U.S.
economy recently showing greater resiliency, there are still some worries in the market, including about the Chinese economy, Ichikawa added.
Toshikazu Horiuchi, equity strategist at IwaiCosmo Securities Co., said the stronger yen, which cuts the value of Japanese companies' overseas profits when repatriated, has raised concerns about their earnings.
Many Japanese companies, including major exporters, closed their fiscal 2015 books last Thursday and are set to release the results later this month and in May.
"A weaker yen would bring back a positive mood to the market," Horiuchi said, adding that investors seem to be awaiting further hints about whether the
U.S.
Federal Reserve will raise interest rates again this year, a move that would strengthen the dollar against the yen and subsequently benefit
Tokyo
equities.
On the First Section, declining issues trounced advancing ones 1,896 to 43, while 11 ended the day unchanged.
Bank shares dived as investors remained jittery about whether the Bank of Japan will expand its negative rate policy, which has already weighed on profit margins on lending, brokers said. The central bank is scheduled to hold its next policy meeting later this month.
Mitsubishi UFJ Financial Group dropped 22.10 yen, or 4.3 percent, to 487.00 yen while Sumitomo Mitsui Financial Group sagged 134 yen, or 4.1 percent, to 3,166 yen.
Fast Retailing declined 1,390 yen, or 4.2 percent, to 32,020 yen after the operator of the Uniqlo casual clothing chain said Monday that customer visits declined in March from a year earlier for the second consecutive month of decline.
Nachi-Fujikoshi shed 45 yen, or 11.9 percent, to 334 yen after the machine tool manufacturer reported Monday a 50 percent fall in group net profit for the first quarter through February, citing economic slowdowns in
China
and other emerging countries.
Bucking the downward trend, Nichi-Iko Pharmaceutical rose 9 yen, or 0.4 percent, to 2,468 yen after the major generic drug maker announced a share buyback plan Monday.
Trading volume on the main section rose to 2,233.87 million shares from Monday's 2,068.49 million shares.
==Kyodo
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