Nikkei closed below 27 thousand points amid concerns over China

Japan’s Nikkei gave up most of the morning’s gains during the overnight session, to close below the 27,000-point level on Monday, as investors worried about the outlook for the Chinese economy.

The index ended trading up 0.31 percent at 26,974.90 points. Out of 225 stocks on the index, 133 rose compared to 88 stocks fell, while four remained unchanged.

The broader Topix index rose 0.28 percent to 1,887.19 points.

The Nikkei started trading Monday in the Tokyo Stock Exchange with gains, as it entered the lunch break up by 1 percent, supported by optimism about a slight decline in the tight monetary policy of the Federal Reserve.

However, the focus has increasingly shifted to China amid a sell-off in Hong Kong and the mainland after Chinese President Xi Jinping selected a leadership team at the twice-a-decade Communist Party Congress and demonstrated the focus on ideology-driven policies, sacrificing economic growth.

The real estate sector was the worst performer in the Nikkei index, as it fell 2.12 percent.

Chip-related companies ended trading without giving up most of their strong early gains.