August 13, 2018 / 3:16 AM / 2 months ago

Nikkei tumbles to more than 1-month low as emerging market rout hits sentiment

* Commodity stocks underperform as emerging market currencies tumble

* Mothers market falls to lowest since April 2017

* Don Quijote bucks weakness on strong sales forecast

By Ayai Tomisawa

TOKYO, Aug 13 (Reuters) - Japan’s Nikkei tumbled to a more than one-month low as a sell-off in emerging market currencies spooked stock investors, with the safe-haven yen’s appreciation hurting sentiment and dragging down the broader market.

Commodity stocks underperformed on worries about emerging market economies after the South African rand fell more than 10 percent versus the U.S. dollar as massive falls in the Turkish lira triggered selloffs in other emerging market currencies.

The Nikkei share average fell 1.6 percent to 21,942.23 at the midday break, after hitting as low as 21,915.36, the lowest level since July 11.

All sectors, except the services sector, fell with shippers, metal and iron stocks and electronics firms and financials stumbling.

The Mothers market, an index for startup companies, dropped 3.5 percent to 968.59, the lowest level since April 2017.

“Since risk sentiment was dampened by the strong yen and worries in emerging market currencies, growth stocks are the last place investors are looking,” said Hikaru Sato, a senior technical analyst at Daiwa Securities. “Even defensive stocks were sold because there is too much uncertainty in the global market now.”

The euro touched a 13-month low against the dollar on Monday as investors bid up safe havens such as the U.S. dollar and the yen on worries about the exposure of European banks to crisis-hit Turkey.

The dollar fell 0.7 percent against the yen to 110.23 yen , the lowest level in six weeks.

Index-heavyweight Fast Retailing dropped 1.5 percent and knocked a hefty 27 negative points from the Nikkei, while technology stocks TDK Corp tumbled 4.7 percent and Tokyo Electron shed 2.5 percent.

Commodity stocks were hard hit, with Nippon Steel & Sumitomo Metal Corp falling 2.1 percent and shippers Mitsui OSK Lines tumbling 3.7 percent and Kawasaki Kisen tanking 4.3 percent.

Banking stocks also lost ground, with Mitsubishi UFJ Financial Group falling 2.7 percent and Mizuho Financial Group shedding 1.6 percent.

Conversely, discount goods chain operator Don Quijote bucked the weakness and soared 4.4 percent after the company said it expects a 6.2 percent rise in its sales to 1 trillion yen for the year ending June 2019, moving forward its goal to post 1 trillion yen in sales by one year.

The broader Topix dropped 1.7 percent to 1,690.63. (Editing by Sam Holmes)

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