WORLD
Nikkei drops to 3-week low on machinery data, yen strength
Baku, November 10 (AZERTAC). Nikkei drops to 3-week low on machinery data, yen strength. The Nikkei stock average fell 1.5 percent to a three-week closing low on Thursday, as worse-than-expected domestic machinery orders figures increased
concerns that Japan`s economy was slipping into recession and as
strength in the yen weighed on exporters.
The yen has gained on worries that the U.S. `fiscal cliff`, a mix of mandated tax increases and spending cuts due to extract some $600 billion from the U.S. economy in the new year, could push the United States and possibly the global economy into
recession.
The reemergence of macro-economic concerns, on a brief hiatus due to the U.S. Presidential election, comes amid a weak quarterly earnings season.
"The Japanese stock market does not have positive trading cues for the time being as companies are cutting their forecasts," said Hiromichi Tamura, chief equity strategist at
Nomura Securities.
The Nikkei dropped to 8,837.15, its lowest close since Oct. 17, breaking below its 25-day moving average at 8,867.44.