Japanese stocks fell, tracking declines in U.S. and Chinese equities, as a selloff in commodities pushed down shares of airlines and iron producers.
The Topix lost 0.4 percent to 1,666.24 at 9:02 a.m. in Tokyo, with all but eight of its 33 industry groups retreating. The Nikkei 225 Stock Average declined 0.4 percent to 20,479.60. Copper, zinc, nickel and oil fell in a renewed drop in commodities after Chinese stocks slumped amid speculation the world’s second-biggest economy will face further headwinds. The outlook for higher interest rates from the Federal Reserve also curbed demand for riskier assets.
The Bloomberg Commodity Index fell on Tuesday to the lowest level since February 2002. The gauge of 22 raw materials declined for a sixth day in the longest run of losses in more than a year.
With China the world’s biggest consumer of industrial metals, last session’s 6.2 percent slump in the Shanghai Composite Index rattled raw-material investors, coming a week after the country’s surprise devaluation of the yuan. U.S. oil fell for the second time in three days as investors awaited an update Wednesday on American crude stockpiles amid resurgent concern over a global glut.