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Nikkei index opens lower

Nikkei index opens lower

Japan's key stock index opened lower Monday despite a report that the government was considering massive capital injection into struggling banks in a bid to calm jittery financial markets.
The benchmark Nikkei 225 stock average shed 38.73 points, or 0.51 percent, to 7,610.35 as of 09:50 a.m. (0050 GMT) Monday, extending further losses from Friday when the index nose-dived 9.6 percent on recession fears and a surging yen. Last week, the Nikkei index lost 12 percent.
"The reported plan by the government hardly cheered investors. What the market really wants is a package of stimulus measures to boost the Japanese economy," said Kazuki Miyazawa, market analyst at Daiwa Securities SMBC Co. Ltd.
Citing unidentified sources, the Yomiuri newspaper said Monday the government is considering injecting public money worth 10 trillion yen ($108 billion) into struggling banks in a bid to stabilize the financial market hit by sagging stocks and a soaring yen.
The paper said the government could announce the injection measure as early as Monday.
Miyazawa said sentiment remained downbeat with export-linked stocks under pressure amid a stronger yen.
A strong yen hurts Japanese exporters by eroding their overseas earnings when converted back to yen.
The yen stood at 94.03 to the dollar in Tokyo morning trade Monday, compared with 94.24 yen in New York late Friday. The Japanese currency hit the 90-yen level against the dollar Friday, the highest since August 1995.


Updated : 2020-12-03 16:47 GMT+08:00