Japan: Nikkei tumbles 2.7%, gives up previous day's gains on oil, growth worries

[TOKYO] Japanese stocks fell on Thursday, giving up most of the previous day's gains as weak oil prices fanned fears about a slowdown in the global economy.

The Nikkei share average slid 2.7 per cent to 17,240.95 for its lowest closing in 3-1/2 months. The benchmark index recovered slightly after a midday foray below 17,000 points, but still gave up most of Wednesday's 2.9 per cent gain.

Shares of Apple supplier Alps Electric Co Ltd tumbled 5.1 per cent after Barclays cut its target price to 3,600 yen per share from 4,600 yen per share, citing projections for sluggish iPhone demand.

Sharp Corp fell 4.4 per cent after Barclays cut its target price to 70 yen per share from a previous target of 80 yen per share. Market participants said investors had continued to short the stock as the company struggles with restructuring and governance issues.

The broader Topix shed 2.5 per cent to end the day at 1,406.55 with all of its 33 subindexes in negative territory.

The JPX-Nikkei Index 400 fell 2.5 per cent to 12,662.84.

REUTERS