Tokyo stocks slide on worries over US credit downgrade

Tokyo stocks continued to move downward on Monday as concerns over the financial market impact of a recent U.S. credit rating downgrade by Moody’s weighed down investors’ sentiment.

The benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, closed at 37,498.63, down 255.09 points, or 0.68 percent, from the previous trading day, News.Az reports, citing foreign media.

This marked the longest losing streak since early January. Selling pressure came from worries about the U.S. economy, weak U.S. stock futures, and a sluggish performance in Asian markets.

Although the market saw some bargain-hunting backed by expectations for long-term gains, the downward pressure remained prominent, and the Nikkei briefly dropped by over 300 points during the session.

The yen strengthened to around 145 yen per dollar following a rise in U.S. long-term interest rates, further prompting selling in Japanese equities.

The broader Topix index also declined, falling 2.06 points, or 0.08 percent, to 2,738.39.

Of the listed stocks on the Tokyo Stock Exchange Prime Market, 750 declined, 826 rose, and 55 were unchanged.

News.Az