Japan’s Nikkei declines, tracking Wall Street

Japan’s Nikkei index fell on Thursday after a sharp sell-off on Wall Street overnight, and Toyota automaker shares plunged against the backdrop of a widening safety scandal at its Daihatsu Motor unit.

According to Reuters, the Nikkei fell 1.59% to close at 33,140.47 points. Of the 225 stocks listed, 187 declined and 36 rose, while two stocks closed stable. The broader Topix index fell 1%

On Wednesday, the Nikkei reached 33,824.06 points, approaching its highest level in 33 years, which it recorded last month at 33,853.46 points. Wednesday’s rise came after the Bank of Japan stuck to its stance on monetary policy the day before, disappointing traders who expected signs that the ultra-loose policy would soon be abandoned.

Japanese stocks also benefited on Wednesday from the rise in US stocks and the rise of the Dow Jones and Nasdaq indices to record levels this week, amid expectations that the Federal Reserve (the US central bank) is close to lowering interest rates.

Toyota’s shares fell 5.6% before closing down 4% following its small car manufacturing unit announcing that it would stop all vehicle shipments after an independent committee concluded that crash tests had been tampered with.

Toyota’s decline made the transportation equipment sub-index the worst performing among the 33 sub-sectors on the Tokyo Stock Exchange, with a decline of 2.87 percent.

The shares of Fast Retailing, which owns the Uniqlo clothing brand, also fell by 3.91% and led to the largest decline in the Nikkei index.

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