Tokyo's Nikkei index drops 2.67% amid global risk worries

[TOKYO] Tokyo's benchmark Nikkei index dropped 2.67 per cent on Tuesday amid lingering worries over geopolitical risks and ahead of the corporate earnings report season.

The Nikkei 225 index dropped 2.67 per cent or 604.04 points to end at 22,010.78, while the broader Topix index lost 2.63 per cent or 44.59 points to 1,650.72.

"Geopolitical risks linked to the EU and the Middle East dragged down share prices, extending falls on New York's Dow," Okasan Online Securities said in a commentary.

The falls in Tokyo came after another volatile day of trading on Wall Street in which major indices extended losses, with the looming US congressional elections also making for rough seas.

"Selling hit financial stocks in New York, dampening sentiment," said Mutsumi Kagawa, chief global strategist at Rakuten Securities.

"Caution has also risen due to recent rising volatility after New York stocks powered to their highest-ever levels and the Nikkei hit its 27-year high," he said.

Market players are waiting for Japanese corporate results while watching US earnings results coming out now, he said.

The dollar fetched 112.42 yen in Asian trade, against 112.81 yen in New York.

In Tokyo, Sony was down 1.98 per cent at 6,184 yen, telecom giant SoftBank fell 2.92 per cent to 9,157 yen and chip-making equipment manufacturer Tokyo Electron plunged 3.33 per cent to 14,800 yen.

In New York, the Dow ended down 0.5 per cent at 25,317.61.

AFP