The Japanese Nikkei index closed trading lower and reached its lowest level in more than two months, Wednesday, August 16, as expectations for the Chinese economy pressured risk appetite, including bank stocks, after a report on a possible downgrade of the rating of major US banks.
The Nikkei index fell 1.46% to 31,776.82 points, its lowest level since June 8, in the biggest daily decline since August 3.
The broader Topix index fell 1.29% to 2,260.84 points.
A wide range of Chinese economic data released on Tuesday highlighted the mounting pressure on the economy from several fronts, prompting Beijing to cut key interest rates to boost economic activities.
banking index
The banking index lost 2.29% after shares of major US banks fell, including JP Morgan and Bank of America, following a report that Fitch Ratings might downgrade a number of US banks.
Mitsubishi UFJ Financial Group fell 2.94%, Sumitomo Mitsui Financial Group fell 1.56%, and Mizuho Financial Group fell 2.12%.
energy companies
The index related to energy companies fell, with shares of oil refineries falling 2.79%, becoming the worst performer among the 33 sub-sectors on the Tokyo Stock Exchange. Shares of energy exploration companies fell 2.25%.
Bucking the trend, Advantest, a maker of chip testing equipment, rose 1.1%, giving the Nikkei the biggest boost.
