Nikkei hits 2-week closing low after China rate hike

TOKYO (BestGrowthStock) – Japan’s Nikkei average fell almost 2 percent to book its lowest close in two weeks on Wednesday as investors rushed to take profits after China unexpectedly tightened credit.

China raised interest rates by 25 basis points, its first hike in nearly three years, and resource-related shares in particular took a hit as investors reined in risk appetite for commodities.

But the Nikkei pared earlier losses as Shanghai shares reversed an early fall, with some analysts also saying China’s move was beneficial for the Chinese economy in the long run.

The benchmark Nikkei lost 157.85 points, or 1.7 percent, to 9,381.60, its lowest close since October 4. It fell as much as 2.3 percent at one stage.

The broader Topix declined 1.2 percent to 823.69.

(Reporting by Aiko Hayashi; Editing by Chris Gallagher)

Nikkei hits 2-week closing low after China rate hike