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"The downgrade news isn't good because that may cause problems such as a hike in interest rates and other lingering financial issues"
- Naoki Fujiwara, a fund manager at Shinkin Asset Management Co.
Japanese stocks tumbled on Tuesday after S&P put credit rating of 15 euro zone member countries under review for potential downgrade. The Nikkei 225 declined 1.39%, or 120.82 points, to 8,575.16, while the broader Topix decreased 1.42%, or 10.60, to 738.01.
"The downgrade news isn't good because that may cause problems such as a hike in interest rates and other lingering financial issues," said Naoteru Teraoka, general manager at Tokyo-based Chuo Mitsui Asset Management Co. "The market has to take it negatively. Psychologically, it's not good."
Cabinet Office is to announce month on month change in core machinery orders on Thursday. Economists expect the reading to advance 0.8 percent in October, after 8.2 percent decline in September.