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Japan shares fall on renewed credit concerns

Japan shares fall on renewed credit concerns

Japanese stocks fell Tuesday as renewed credit market concerns rattled investor sentiment in very light trading.
The benchmark Nikkei 225 stock index slipped 0.78 percent to 12,778.71, while the broader Topix index retreated 0.79 percent to 1,229.4.
Trading was extremely lethargic, with the value of shares on the First Section of the Tokyo Stock Exchange hitting its lowest point this year.
Masatoshi Sato, senior strategist at Mizuho Investors Securities, said investors seem to be paralyzed. Lackluster activity over the past few weeks has been blamed on the "Obon" holidays in early August and then the Olympics. But the excuses have dried up this week, he said.
"Honestly, I've never seen such thin trading," Sato said. "A do-nothing attitude is very strong."
On Wall Street overnight, the Dow Jones industrial average fell by more than 240 points as worries about American International Group Inc. touched off broader concerns about U.S. financial companies.
The jitters extended to Tokyo, where banking, consumer finance and securities issues led declines.
Consumer credit firm Credit Saison Co. lost 2.44 percent to 2,200 yen, brokerage Nomura Securities, Inc. shed 2.07 percent to 1,420 yen, and Mitsubishi UFJ Financial Group, Inc. closed down 1.32 percent at 820 yen.
Real estate issues declined following news of the latest bankruptcy to hit the struggling sector. Developer Sebon Corp. filed for protection from creditors Monday with 62.1 billion yen (US$569 million) in liabilities, said corporate credit research firm Teikoku Databank.
Developer Joint Corp. tumbled 3.9 percent to 246 yen, and real estate investment fund manager Pacific Holdings, Inc. lost 5.0 percent to 15,290 yen on the Tokyo Stock Exchange.
The country's biggest real estate companies, considered less vulnerable to weakness in the sector, fared slightly better. Mitsui Fudosan Co. fell 1.08 percent to 2,295 yen, and Sumitomo Realty & Development Co. lost 1.10 percent to 2,245 yen.
Among gainers, Mazda Motor Corp. rose 2.50 percent to 573 yen, and Nippon Sheet Glass Co. jumped 5.14 percent to 552 yen.
In currencies, the dollar stood at 109.88 yen late Tuesday afternoon, up from 109.21 yen late Monday. The euro was trading at US$1.4615 from US$1.4726.


Updated : 2021-10-17 10:40 GMT+08:00