The Tokyo Stock Exchange ended Thursday down more than 2% within the scope of the further fall in Chinese equity markets after the central bank’s second-largest economy has accelerated the devaluation of the yuan.
The Nikkei lost 423.98 points, or 2.33%, to 17,767.34. The Topix, broader, fell 30.90 points (2.08%) to 1457.94 points.
The Nikkei has posted its fourth straight session of decline and was down more than 6.5% since the beginning of the year, following a gain of 9.1% for the whole of last year.
Chinese stock markets closed prematurely Thursday after falling more than 7% after less than half an hour of exchange, which dive as Monday once again triggered the activation of any new “circuit breakers “set up after the crash of the summer.
The PBOC has caught short market participants in setting the central rate of the Chinese currency to 6.5646 yuan to one dollar, the lowest since March 2011.
This represents a decline of 0.5% on Wednesday and is the sharpest daily fall since mid-August when an unexpected devaluation of 2% had been wavering world stock markets.
The weakening of the yuan translates into a stronger yen, which weighed on many export stocks of the Tokyo Stock Exchange