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Daily Scan: Japan wipes out 2015 gains, Europe health stocks slip

By NexChange
Capital Markets

Updated throughout the day

September 29 

Nearly all Asian markets finished in the red today with Tokyo the hardest hit. The Nikkei 225 collapsed 4.05%, wiping out all its gains for 2015.  While slowing growth in China and fears of a commodity slump have impacted everyone, Japan's massive fall today has renewed concerns that the Abenomics growth story may have hit the buffers. The Financial Times offers Sony as an example of how far sentiment has soured: the firm began the day announcing a box-office record for its new animated film Hotel Transylvania 2, only to see it share fall 8%.

As markets open in Europe, shares are still sliding. The FTSE Eurofirst 300 opened down 1.3%, following from losses of nearly 2% on Monday. The STOXX Europe 600 Health Care Index is reported to be among the worst-performing sector indices, falling 2.1%, after US pharmaceutical and bitotech stock fells overnight.

Here is what else you need to know:
China’s offshore yuan softens versus US dollar. The offshore yuan softened against the US dollar today, at one point trading at a premium against the same day’s mid-price fix for the first time since November. At 6.3710 against the greenback, the offshore yuan was weaker by 130 basis points from Monday’s close, ending the currency’s longest winning streak in one month. South China Morning Post (paywall)
U.S. still on track for 2015 rate hike. William Dudley, president of the Federal Reserve Bank of New York, said Monday the central bank is likely to raise short-term interest rates this year, echoing Chairwoman Janet Yellen’s message last week. Wall Street Journal.
Typhoon Dujuan kills two in Taiwan. Two people were killed by a powerful typhoon which swept Taiwan on Monday night. About 1.8 million homes lost power during Typhoon Dujuan, which brought gusts of up to 227km/h. BBC
China angered by Hillary Clinton tweet on women's rights. From calling her a "big mouth" to making Monica Lewinsky jokes, China has reacted furiously at US presidential candidate Hillary Clinton's recent comments about China's record on women's rights. Clinton said in a tweet that China President Xi Jinping was "shameless" for hosting a UN conference on women's rights. BBC
U.S. launches airstrike after Taliban assault on Afghan city. US forces carried out the airstrike on the northern Afghan city of Kunduz today after after Taliban insurgents fought their way into the major city. The Washington Post.
Ex-VW CEO investigated for fraud. German prosecutors are looking at Martin Winterkorn for fraud over Volkswagen rigging the diesel emissions tests. Reuters

Iraq agrees to share IS intel with Russia, Syria, and Iran. The agreement – announce

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