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Japanese shares fall as VW scandal hits carmakers | |
(about 4 hours later) | |
Japanese shares fell as trading restarted after a three-day holiday, with shares in carmakers hit by the fallout from the VW emissions scandal. | |
The benchmark Nikkei 225 index closed down 2.8% at 17,571.83. | |
Shares in car giants Toyota, Honda and Nissan all fell, as they followed the downward trend for the sector after the revelation that Volkswagen manipulated US diesel car emissions tests. | |
There are concerns the scandal will intensify scrutiny on all carmakers. | |
Sentiment was also hit by some downbeat manufacturing surveys. The preliminary Nikkei/Markit purchasing managers' index for Japan's manufacturing came in below expectations for September at 50.9. | |
Although a reading above 50 indicates expansion in the sector, the reading was the lowest since June and down from August's figure of 51.7. | |
On Wednesday, a similar survey of Chinese factory activity recorded the lowest reading for six and a half years. | |
China trades mixed | |
Chinese shares were trading mixed after losing more than 2% in the previous session. | |
The Shanghai Composite was up 0.6% at 3,134.24, while Hong Kong's Hang Seng index fell 0.7% to 21,164.27. | |
The mainland market has stabilised in recent weeks after dropping more than 40% from its peak in mid-June. | |
In Australia, the S&P/ASX 200 index ended up 1.5% at 5,071.70, while South Korea's Kospi index finished 0.1% higher at 1,947.10. | |
Markets in Indonesia, Malaysia and Singapore were closed for a public holiday. |