Nikkei falls 3.5% amid growing yen and decreasing business confidence
On Friday, Japan stocks dipped abruptly following concerns that strength in the yen would probably weigh on corporate earnings.
In the rest of Asia, most stocks dipped, notwithstanding growing Chinese factory output.
The Nikkei Stock Average sagged 3.4%, trading at 16,200.68 with the yen growing against the greenback. Then, the Hang Seng Index in Hong Kong lost 1.3%, the Shanghai Composite Index was deprived of 1.4%, Australian S&P ASX 200 descended 1.8% and Korean Kospi finished -0.8%.
There’s a huge worry in Japan, where its Prime Minister Shinzo Abe is looking forward to boosting economic growth, though this concern has started losing its power, at least recent surveys show this.
In March, a gauge of sentiment among key manufacturers decreased to +6 from December’s result of +12. It appeared to be the lowest reading for three years. By the way, economists had previously foreseen +8, as the Wall Street Journal states. The plus figure stands for the overall percentage of respondents telling business conditions are good enough, while minus points out to unfavorable business conditions.