Fears over a potential Greek default intensified over the weekend after German Deputy Finance Minister Joerg Asmussen said that a decision on the next tranche of bailout funds to Greece may take longer than previously expected
Shares in Nissan Motor Co. lost further ground Monday afternoon, on concerns about the automaker’s sales due to an uncertain global economic outlook.
Among euro-linked shares, Sony declined 4.1% to Y1,423. Several other exporters absorbed severe selling as well; Tokyo Electron dropped 4.9% at Y3,585. Nissan hit a fresh 2011 low en route to a 3.6% loss to Y620.
“The biggest problem is that neither the U.S. nor Europe have many policy options left,” said Masayoshi Yano, a senior market analyst at Meiwa Securities.
Steel, non-ferrous metals, automobile, mining and rubber stocks are mostly down with notable losses. Banking, pharmaceuticals and electric power stocks are trading mixed after finding some support early on in the session.
“Depending on how the Greek situation progresses, the Nikkei could fall below the March 15 low in the first 10 days of October,” said Takashi Ushio, head of the investment strategy division at Marusan Securities Co.
Sony lost 3.8% and Toyota Motor gave up 1.9% with the yen’s strength exacerbating selling in stocks with the biggest exposure to offshore markets. In Seoul, trading remained volatile with Samsung Electronics advancing 1.2% while oil companies such as S-Oil fell 4.2%.