Nikkei tumbles to 2-1/2-week low as Trump allegations lower stimulus hopes

TOKYO: Japanese stocks tumbled to 2-1/2-week lows on Thursday morning on worries that allegations against the U.S. President Donald Trump over his interference with a federal investigation would delay his efforts on tax cuts and economic stimulus.
The Nikkei share average dropped 1.8 percent to 19,457.75 after falling to as low as 19,449.73, the lowest since May 2.
A small but growing number of Trump's fellow Republicans called on Wednesday for an independent probe of possible collusion between his 2016 campaign and Russia, and one even mentioned impeachment.
A strong Japanese gross domestic product data released in the early morning was offset by the White House turmoil, which dragged down Wall Street sharply overnight, where the S&P 500 and the Dow Jones Industrial Average notched their biggest one-day fall since Sept. 9.
"This GDP data could have been a catalyst for the Nikkei to touch the 20,000 mark if Trump's turmoil did not come at this time," said Masayuki Doshida, a senior market analyst at Rakuten Securities. "Fears that U.S. stocks may fall further in the future are keeping investors nervous."