Japan Shares Close Lower on Evergrande

Japanese stocks tracked the decline in global markets, closing lower on Tuesday, as investors abandoned risky assets on fears of a possible default by China’s Evergrande Group, but some buying to seize opportunities helped limit losses.

The Nikkei index fell 2.17 percent to close at 2,9839.71 points, its biggest drop since June 21. The broader Topix index fell 1.7 percent to 2,064.55 points.

Global markets were rocked on Monday by growing fears of a possible Evergrande default, as the S&P 500 and Nasdaq posted their biggest daily percentage losses since May.

However, market participants said the selling effect on the Japanese market was limited.