August 15, 2019 / 2:11 AM / 2 months ago

Japanese shares drop after Wall Street takes a battering

TOKYO, Aug 15 (Reuters) - Japanese shares slid to a nine-day low on Thursday morning as investor sentiment was battered by a big slide on Wall Street amid resurgent fears of a global recession.

The Nikkei share average was down 1.3% at 20,387.17 as of 0157 GMT. The index touched 20,184.85, its lowest since Aug. 6.

All three major U.S. indexes closed down about 3% on Wednesday, with the blue-chip Dow posting its biggest one-day point drop since October, after the U.S. Treasury yield curve temporarily inverted for the first time in 12 years -considered a classic recession signal.

Shares of Japanese exporters retreated as the safe-haven yen strengthened against the dollar due to the widespread risk aversion.

Toyota Motor Corp fell 1.1%, Honda Motor Co dropped 1.4%, Panasonic shed 2% and Bridgestone Corp was down 1.7%.

Financial institutions also took a hit, as the sharp drop in bond yields was seen hurting their profitability. Mitsubishi UFJ Financial Group lost 1.1%, Mizuho Financial Group retreated 0.9% and Dai-ichi Life Holdings sank 2%.

The broader Topix was down 1.31% at 1,479.94.

Declining shares outnumbered gainers by 1,994 to 120.

All of Tokyo’s 33 sub-indexes were in the red, with oil and coal products and mining the biggest losers. (Editing by Richard Borsuk)

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