Nikkei hits 2-wk closing low after China rate hike

TOKYO, Oct 20 (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. Read More About China’s Economy.

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 (.N225: ) lost 157.85 points, or 1.7
percent, to 9,381.60, its lowest close since Oct. 4. It fell as
much as 2.3 percent at one stage.

The broader Topix (.TOPX: ) declined 1.2 percent to 823.69.
(Reporting by Aiko Hayashi; Editing by Chris Gallagher)

Nikkei hits 2-wk closing low after China rate hike