Nikkei tumbles

Japan's Nikkei share average slid to a one-month low on Thursday, dipping below the 20,000-mark for the first time since mid-May, as the yen strengthened after the US Federal Reserve signalled it will hike interest rates at a slower pace than expected. The market was also bruised by concerns that Greece might be edging closer to a debt default as well as data showing foreign investors last week sold the largest amount of Japanese shares in four months.
The benchmark Nikkei shed 1.1 percent to 19,990.82, the lowest level since May 18, while the broader Topix fell 1.0 percent to 1,616.66 in thin trade volume with turnover more than 10 percent below the average in the last 100 days. Financials and exporters led the losses as all but one of the 33 Topix industry groups dropped. The Nikkei share average dropped 0.7 percent to 20,078.47 in midmorning trade after falling to as low as 20,042.43, the lowest level since June 10. After a closely-watched two-day meeting, the Fed said the economy was likely strong enough to support an interest rate increase by the end of the year. But it lowered its expectations for 2015 economic growth because of a weak start to the year and reduced its growth and federal funds rate forecast.
"The Fed's view on the rate hike gave little surprise to the market," said Masaru Hamasaki, head of market & investment information department at Amundi Japan. "The market is rather concerned about the US economic view in the future." Mitsubishi UFJ Financial Group shed 1.2 percent and Mizuho Financial Group dropped 1.6 percent. Honda Motor Co dropped 0.7 percent. Semiconductor equipment makers underperformed after Semiconductor Equipment Association of Japan said that BB ratio, or book-to-bill ratio, fell to 0.93 in May, falling below 1.0 for a third straight month. A figure below 1.0 means equipment was over supplied. Sumco Corp dropped 3.6 percent and Advantest Corp shed 1.7 percent. The broader Topix fell 0.5 percent to 1,624.83 and the JPX-Nikkei Index 400 shed 0.6 percent to 14,653.50.