Japan’s benchmark stock index, the Nikkei 225 extended losses for the second straight session on Wednesday after investors returned to the market following a 10-day break that included Japan’s Golden Week holidays. The slide in the Nikkei followed a sell-off on Wall Street on Tuesday with investors exiting equities and shifting focus to the safe haven Government bonds ahead of the bumpy US-China trade talks scheduled for later this week.
The Nikkei shed about 1.5 percent on Wednesday, adding to the previous session’s loss of another 1.5 percent, clearly underperforming the other Asian stock indices which were edging lower by 0.5-1.0 percent at 7.30 AM GMT. In addition to a fall in some of the Chinese stocks trading on the Exchange, construction equipment makers Komatsu Limited and Hitachi construction machinery plunged about 4.0 and 2.5 percent correspondingly, while Japan Airlines slumped 3.7 percent with the other losers comprising of tech companies. Yahama Motor Co. Limited was the major loser, tumbling more than 12-percent following its first-quarter earnings announcement after the market hours on Tuesday in which the company reported a 12.8 percent slide in operating profits.