Japanese Nikkei index ended trading at its lowest level in more than two months

The Japanese Nikkei index closed trading lower and reached its lowest level in more than two months, Wednesday, August 16, as expectations for the Chinese economy pressured risk appetite, including bank stocks, after a report on a possible downgrade of the rating of major US banks.

The Nikkei index fell 1.46% to 31,776.82 points, its lowest level since June 8, in the biggest daily decline since August 3.

The broader Topix index fell 1.29% to 2,260.84 points.

A wide range of Chinese economic data released on Tuesday highlighted the mounting pressure on the economy from several fronts, prompting Beijing to cut key interest rates to boost economic activities.