Tokyo – Japan’s Nikkei 225 index fell as much as 2% on Thursday as expectations of a new year low for US stocks faded, as a new survey indicated the economy was slowing in 2017.
The Nikkeis fall to 8,065.19 points, its lowest since January 2017, was the most in the index’s 50-year history and was the result of a survey released by Nomura Holdings Inc. on Thursday.
The index fell 2.4% to 7,890.59 in the latest session, and its loss was wider than the 2% drop in the Nikkeithis reading.
The survey, which included more than 1,500 households, showed the Nikkes performance was down slightly from last week’s report, which saw the index drop 0.4%.
It also said growth was slowing and the Nikkois weakness was likely to persist.
“Nomura forecast that growth will be below 7% this year and that the Nikki will end 2017 with an 11.6% decline,” Nomura said.
“The current data suggest that growth could slow to 7.1% in 2018.”
Nomira said it had no new forecasts for the US, but said that the index would continue to show signs of weakness in 2017, when it gained 8.7%.
“As the year progresses, we expect the Nikken to be on a downward trajectory,” Nomira said.
Nomu said the Nikkos weakness was the latest indication that the economy is slowing.
The stock market had shed 5.9% in 2016, after the global financial crisis.
Nikkeitai, which is based on Nikkeigitai figures, dropped 2.5% in 2017 to 789.93.