Nikkei tumbles erasing 2015 gains, as data from China weighs; Yen rises

Stocks fell in Tokyo, with the Nikkei 225 Stock Average erasing its gains in 2015, after data showing Chinese exports fell for a second month outweighed a report that signaled Japan’s economic downturn is not as deep as first reported.

The Nikkei 225 slumped 2.4 percent at the close of trading in Tokyo, taking its losses since a peak on June 24 to 16 percent.

The Topix index dropped 2 percent, to be within 1 percent of also erasing this year’s gain.

Seven stocks fell for each that rose.

The yen strengthened 0.29% to 119.62 per dollar after the government said Japan’s economy decreased less than previously reported in the second quarter.

A separate report showed Chinese exports dropped in August, adding to growth pressures facing the world’s second-largest economy.

China’s exports fell 5.5% in August from the previous year compared with the market projection of a 5.2% fall. Imports plunged 13.8% in the same month from a year earlier, beating the expectation of a 7.9% decrease.

According to Chinese customs data, China’s crude-oil imports in August fell 13% year-over-year to 26.59 million tons while exports of the same month last year dropped 33% to 220,000 tons, underscoring the nation’s slowdown.

“The difficulty for markets is that there doesn’t seem to be an end to the weakness in exports, and that’s the really the disappointing thing that should be taken away from these numbers,” said Sean Darby, adding that implication for markets including Japan would be negative.

Elsewhere, crude oil was affected by the data from China.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at $44.20 a barrel, down $1.85 in the Globex electronic session.

October Brent crude on London’s ICE Futures exchange rose $0.13 to $47.76 a barrel.

Nymex crude prices are down by around 3.7% compared with Friday’s settlement as U.S. markets were closed Monday in observance of Labor Day. Brent fell around 4% Monday.

West Texas Intermediate prices "fell below the $45 per barrel mark in the final minute as trading on the CME paused because of the U.S. Labor Day holiday. Traded volumes were low–at only 20% of the 15-day average," said ANZ Research in a report.