TOKYO (dpa-AFX) - The Japanese stock market is sharply lower on Thursday, extending losses from the previous session, while the safe-haven yen strengthened following the overnight sell-off on Wall Street amid worries about economic growth.
Investor sentiment was further dampened by news that following a victory at the World Trade Organization, the U.S. plans to impose tariffs on $7.5 billion worth of goods from the European Union.
The benchmark Nikkei 225 Index is falling 461.60 points or 2.12 percent to 21,317.01, after touching a low of 21294.16 earlier. Japanese stocks declined on Wednesday.
The major exporters are weak on a stronger yen. Mitsubishi Electric is lower by almost 3 percent, Panasonic is declining more than 2 percent, Canon is losing 2 percent and Sony is down almost 1 percent.
In the auto sector, Honda Motor is lower by almost 3 percent and Toyota Motor is losing more than 2 percent. In the tech space, Advantest is declining almost 1 percent and Tokyo Electron is lower by 0.5 percent.
Market heavyweight SoftBank and Fast Retailing are losing more than 2 percent each. Among oil stocks, Japan Petroleum is falling almost 4 percent and Inpex is declining more than 3 percent after crude oil prices declined almost 2 percent overnight.
Among the worst performers, Takara Holdings, Yokogawa Electric and Nisshinbo Holdings are all losing more than 4 percent each. T&D Holdings, Tokuyama Corp. and Suzuki Motor are lower by 4 percent each.
On the economic front, the latest survey from Jibun Bank revealed that the services sector in Japan continued to expand in September, albeit at a slower rate, with a PMI score of 52.8. That's down from the 22-month high of 53.3 in August, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction.
In the currency market, the U.S. dollar is trading in the 107 yen-range on Thursday.
On Wall Street, stocks closed sharply lower on Wednesday as disappointing jobs data from payroll processor ADP added to the economic concerns raised by the weak manufacturing data released on Tuesday. ADP said private sector employment climbed by 135,000 jobs in September compared to economist estimates for an increase of about 140,000 jobs.
The Dow plummeted 494.42 points or 1.9 percent to 26,078.62, the Nasdaq slumped 123.44 points or 1.6 percent to 7,785.25 and the S&P 500 tumbled 52.64 points or 1.8 percent to 2,887.61.
The major European markets showed more substantial moves to the downside on Wednesday. While the German DAX Index plunged by 2.8 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index plummeted by 3.1 percent and 3.2 percent, respectively.
Crude oil prices declined sharply on Wednesday after data showed U.S. crude stockpiles rose for a third straight week and worries about a likely drop in global energy demand increased after disappointing manufacturing data from the U.S. and Europe. WTI crude for November delivery tumbled $0.98 or about 1.8 percent to $52.64 a barrel.
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