Nikkei down on US lead

Investors are worried about oil prices’ slide and its effect on the global economy.

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By :  ,  Financial Analyst

Japanese shares tumbled today (January 14th) after a bearish session on Wall Street, as oil prices continue to fall and the yen strengthens against the dollar.

The benchmark index shed 1.71 per cent, to end at 16,795.96, its lowest closing in nearly a month. The Topix closed 1.22 per cent down, at 1,357.98.

Wall Street extended its losing streak to a third session yesterday on the back of plunging crude oil prices, and investor worry about how producer countries will be affected.

Sentiment was also hampered by the strengthening yen, with the dollar standing below ¥117.50.

"While still expecting that the Bank of Japan will purchase exchange-traded funds when the Nikkei average takes a downturn, investors stayed reluctant to actively buy on dips,"  Hiroichi Nishi, equity general manager at SMBC Nikko Securities Inc., told the Japan Times.

Japanese shares' fall comes despite fresh figures showing Japan had a current account surplus for the fifth month in a row. The country recorded a surplus in November of 433 billion yen (£2.43 billion).

Learn about the Asian markets and CFD trading at City Index.

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