Japan's tumbling stocks yank Nikkei to 20-year low
Associated Press
TOKYO — Tokyo stocks plummeted, sending the market's best-known indicator to a new two-decade low yesterday following a decline on Wall Street and a disappointing forecast from technology giant Sony Corp. The U.S. dollar was higher against the Japanese yen.
The Nikkei Stock Average of 225 selected issues closed down 155.07 points, or 1.97 percent, at 7,699.50 points — its lowest close since Nov. 16, 1982, when it ended at 7,698.30 points. The index gained 61.19 points, or 0.79 percent, on Thursday.
The dollar was quoted at 120.56 yen by late afternoon, up 0.64 yen from late Thursday in Tokyo and above the 119.83 yen it bought in late New York dealing. It fluctuated between 119.70 yen and 120.70 yen in Tokyo trading yesterday.
On the stock market, Tokyo shares began their decline following losses on the U.S. markets and disappointing outlooks from technology powerhouses Sony Corp. and NEC after the market's close Thursday.
Sony reported big profits for the fiscal year just ended, but the results failed to beat analysts' expectations. The company also forecast a profit decline in the current fiscal year.
The news unsettled investors, who sold off technology stocks, including Sony, NEC and Kyocera, as well as chipmakers Advantest and Tokyo Electron.
Other export-related issues, such as automakers Honda and Toyota, also suffered losses. Banking heavyweight Mitsubishi Tokyo Financial Group fell 5.5 percent to its all-time low.
Traders said the selloff was exacerbated by news that severe acute respiratory syndrome, or SARS, continued to spread in China, and North Korea's claims that it has nuclear weapons during this week's talks in Beijing between the isolated regime, China and the United States.
In recent months, the Nikkei has slid to levels not seen since the early 1980s. Since Jan. 1, the index has fallen 11.6 percent and hit fresh 20-year lows five times along the way.
The broader Tokyo Stock Price Index fell 12.42 points, or 1.56 percent, to 782.03 points. The index, which includes more than 1,000 of Japan's largest and most prestigious companies, rose 5.10 points, or 0.65 percent, the previous day.
Traders were busy, with an estimated 912.23 million shares changing hands, up from 889.51 million on Thursday. Declining shares outnumbered gainers 945 to 444, and 122 issues ended unchanged from Thursday.
