The Japanese stock market closed at a 14-and-a-half month low due to the effects of the fall in oil prices, around 27 dollars a barrel in the USA, which is hitting the world financial markets.
Il Nikkei ended the session down 3,7% at 16.416,19 points, worst shutdown since October 24, 2014.
Traders said the market's sharp decline was likely driven by the sell-off by sovereign wealth funds forced to sell to cover continued losses in the value of oil reserves. Middle Eastern countries with currencies pegged to the dollar are almost certainly selling off positions in blue chips such as Sony and Softbank Group Corp, we learn in the operating rooms.
Sony's selling began early in the session and continued throughout the day, with the electronics giant finishing 8% lower. Softbank Group Corp plunged 7%, to a two-and-a-half-year low.
Shares of postal companies, which made their public debut last November in the largest Japanese IPO since 1987, fell to record lows in panic selling. Japan Post Holdings Co Ltd lost 5,2% to a low of 1,543 yen, falling below its IPO price of 1,596 yen for the first time and finishing down 5%.
Japan Post Bank Co Ltd e Japan Post Insurance Co Ltd are also at their lowest with losses of 4,8% and 4,2% respectively.
