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Japanese stocks tumble 1.7 percent in wake of Wall Street sell-off

Japanese stocks tumble 1.7 percent in wake of Wall Street sell-off

Japan's benchmark stock index plunged 1.7 percent Wednesday as the yen strengthened after Wall Street's fall amid renewed jitters over the U.S. credit market.
The Nikkei 225 lost 274.66 points on the Tokyo Stock Exchange to finish at 16,012.83 points.
A stronger yen also prompted traders in Tokyo to sell exporters, whose overseas earnings are eroded by yen appreciation. The U.S. dollar was trading at 114.37 yen at 4:50 p.m. (0750 GMT) Wednesday, down from 114.56 yen late Tuesday in New York.
Investors will be closely watching the Tokyo market in the coming days to see if the index will find sustainable support above its Aug. 17 intraday low of 15,273.68.
"The market hasn't bottomed out yet," said Nobuyuki Nagamori, a general manager at Unimat Yamamaru Securities.
The slip in the dollar against the yen, briefly to below 114.00 yen, reduced expectations that exporters' earnings could get a boost from a weaker yen this fiscal year, traders said.
Losers included blue chip auto and electronics shares. Sony Corp. fell 2.79 percent to 5,230 yen (US$45.88; euro33.58), and Toyota Motor Corp. dropped 1.95 percent to 6,530 yen (US$57.28; euro41.92).
Banks and steel shares also fell. Mizuho Financial Group Inc. dropped 0.56 percent to 710,000 yen (US$6,228.07; euro4,558.01), and Nippon Steel Corp. dropped 1.49 percent to 793 yen (US$6.96; euro5.09).
Overnight in New York, the Dow Jones industrial average sank 280.28, or 2.10 percent, to 13,041.85, its biggest drop since Aug. 9. Investors grew more uneasy about the U.S. economy and whether the U.S. Federal Reserve will take steps to prevent credit market problems from spreading further.
With trading volumes low in recent days, traders said it was unlikely the market would bounce back quickly.
"One concern is that trading volume is still low and it may be a little too early to talk about a market trend," said Mizuho Investors Securities trading information officer Terushige Shibata. Volume on the main section totaled 1.69 billion shares, against Tuesday's 1.33 billion shares.
The broader Topix index, which includes all shares on the exchange's first section, fell 27.05 points, or 1.71 percent, to 1,557.55 points. The Topix lost 0.20 percent Tuesday.


Updated : 2021-06-15 06:09 GMT+08:00