Tokyo Stocks Close Tuesday in Red

(MENAFN) Japanese equities suffered steep losses Tuesday, with the benchmark index sliding beneath the critical 50,000 threshold to reach its weakest close in two weeks, as investors adopted defensive positions ahead of crucial U.S. economic data releases.

The 225-issue Nikkei Stock Average dropped 784.82 points, or 1.56 percent, from Monday to 49,383.29, its lowest closing level since Dec. 2. The broader Topix index fell 60.97 points, or 1.78 percent, lower at 3,370.50.

Nonferrous metal, securities house and mining issues led the selloff across sectors.

Currency markets saw the U.S. dollar retreat to the upper 154 yen zone during Tokyo trading sessions, as the Japanese currency strengthened on market anticipation that the Bank of Japan will raise its benchmark interest rate at a two-day policy meeting through Friday, dealers said.

Within equity markets, heavyweight technology stocks mirrored overnight weakness in their U.S. peers, while export-oriented companies faced headwinds from an appreciating yen that erodes overseas earnings when repatriated.

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