Nikkei and China

People Bank China: Friday night brought further carnage to European and U.S. equity markets, according to The Japan Times. Some analysts now say the Nikkei could sink to the 16,000 level before the end of the year, vastly below earlier forecasts based on a firm outlook for Japan economy and a weakening yen. The 225-issue Nikkei Stock Average closed down nearly 3 percent Friday on the heels of steep sell-offs in Shanghai. Shanghai stocks’ downward spiral and the surprise moves of the People Bank of China to sharply devalue the yuan against the U.S. dollar earlier this month have stripped investors’ confidence. Investors are doubly worried that further yuan weakness may stunt the growth of China emerging economy trading partners in Asia and beyond by hurting their exports, Nishi said. China desperate currency moves have suggested the country real economic health could be in a worse state than previously thought, said Hiroichi Nishi, assistant general manager of investment research at SMBC Nikko Securities Inc. (news.financializer.com). As reported in the news.