Nikkei average sheds over 1,300 points in two days

Japan stocks suffer biggest blow from U.S. downgrade by Fitch

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The Nikkei Stock Average, the year's best-performing index, on Aug. 3 experienced a second straight day of sell-offs. (Photo by Satoko Kawasaki)

KOSUKE IGUCHI, Nikkei staff writer

TOKYO -- The Nikkei Stock Average lost more than 500 points in Thursday trading, taking its total loss from Wednesday morning -- after a rating agency downgraded U.S. Treasurys -- to over 1,300 points.

Despite the downgrade triggering a global stock sell-off, the Dow Jones Industrial Average fell only 0.97% on Wednesday. Among the world's key markets, the Tokyo Stock Exchange suffered the biggest blow. Why?

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