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Tokyo stocks down 4.43% by noon
August 9, 2011, Tuesday
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TOKYO shares plunged 4.43 percent this morning, a third straight day of heavy selling following massive losses on Wall Street.
The benchmark Nikkei-225 index of the Tokyo Stock Exchange lost 403.25 points to 8,694.31 by the lunch break, falling below the 9,000 mark for the first time since March 17, days after the quake-tsunami disaster.
The Topix index of all first-section issues tumbled 4.64 percent or 36.34 points to 746.52.
Investors were increasingly nervous that the US economy may slide into another recession as the historic US credit downgrade by Standard & Poor's Friday sent shockwaves through markets already roiled by Europe's debt crisis.
Selling accelerated today following a plunge in South Korean shares and the release of Chinese data showing July inflation at a more-than three year high.
"We're starting to see a panic situation where investors are running for the exit to avoid further losses," Tsuyoshi Segawa, equity strategist at Mizuho Securities, told Dow Jones Newswires.
"The key (to stemming the global equity sell-off) is whether the US Fed will come out with measures, not only to increase liquidity, but to turn around economic conditions," said UBS Chief Strategist Shoji Hirakawa.
He cited the possibility the US Federal Reserve may decide on a third round of monetary easing as it holds a policy board meeting later today.
Shares in key markets such as the United States and Japan are "nearing their technical bottoms," he added.
Japan's Finance Minister Yoshihiko Noda said he was watching markets closely and staying in close contact with monetary authorities abroad.
He also denied a news report today that he intends to resign soon and attempt to succeed unpopular Prime Minister Naoto Kan.
Tokyo Electric Power Company (TEPCO) fell 11.56 percent to 344 yen after reports it would incur special losses of US$6.5 billion for the April-June quarter as it faces huge compensation costs for the Fukushima nuclear disaster.
Oil companies plunged on sharp declines in crude prices, with Inpex down 9.79 percent at 474,500 and JX Holdings off 7.52 percent at 467 yen.
Financials also fell amid concerns over a global economic slowdown, with Nomura Holdings losing 7.05 percent to 316 yen.
Stocks plunged around the world yesterday. On Wall Street the Dow Jones Industrial Average fell 5.55 percent -- its biggest one-day drop since late 2008 -- while the broader S&P 500 fell 6.7 percent and the tech-heavy Nasdaq dived 6.9 percent.
In Europe Frankfurt was down more than 5.0 percent, Paris lost 4.7 percent and London dived nearly 3.4 percent.
The euro bought US$1.4174 in Asian midday trade today, marginally down from US$1.4179 in New York late yesterday.
The dollar fell to 77.16 yen from 77.68 yen in New York.
The benchmark Nikkei-225 index of the Tokyo Stock Exchange lost 403.25 points to 8,694.31 by the lunch break, falling below the 9,000 mark for the first time since March 17, days after the quake-tsunami disaster.
The Topix index of all first-section issues tumbled 4.64 percent or 36.34 points to 746.52.
Investors were increasingly nervous that the US economy may slide into another recession as the historic US credit downgrade by Standard & Poor's Friday sent shockwaves through markets already roiled by Europe's debt crisis.
Selling accelerated today following a plunge in South Korean shares and the release of Chinese data showing July inflation at a more-than three year high.
"We're starting to see a panic situation where investors are running for the exit to avoid further losses," Tsuyoshi Segawa, equity strategist at Mizuho Securities, told Dow Jones Newswires.
"The key (to stemming the global equity sell-off) is whether the US Fed will come out with measures, not only to increase liquidity, but to turn around economic conditions," said UBS Chief Strategist Shoji Hirakawa.
He cited the possibility the US Federal Reserve may decide on a third round of monetary easing as it holds a policy board meeting later today.
Shares in key markets such as the United States and Japan are "nearing their technical bottoms," he added.
Japan's Finance Minister Yoshihiko Noda said he was watching markets closely and staying in close contact with monetary authorities abroad.
He also denied a news report today that he intends to resign soon and attempt to succeed unpopular Prime Minister Naoto Kan.
Tokyo Electric Power Company (TEPCO) fell 11.56 percent to 344 yen after reports it would incur special losses of US$6.5 billion for the April-June quarter as it faces huge compensation costs for the Fukushima nuclear disaster.
Oil companies plunged on sharp declines in crude prices, with Inpex down 9.79 percent at 474,500 and JX Holdings off 7.52 percent at 467 yen.
Financials also fell amid concerns over a global economic slowdown, with Nomura Holdings losing 7.05 percent to 316 yen.
Stocks plunged around the world yesterday. On Wall Street the Dow Jones Industrial Average fell 5.55 percent -- its biggest one-day drop since late 2008 -- while the broader S&P 500 fell 6.7 percent and the tech-heavy Nasdaq dived 6.9 percent.
In Europe Frankfurt was down more than 5.0 percent, Paris lost 4.7 percent and London dived nearly 3.4 percent.
The euro bought US$1.4174 in Asian midday trade today, marginally down from US$1.4179 in New York late yesterday.
The dollar fell to 77.16 yen from 77.68 yen in New York.
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