Posted on: Friday, March 7, 2003

Tokyo stocks close at their lowest since 1983

Associated Press

TOKYO — Tokyo stocks closed at near 20-year low today as investors apprehensive about a potential war by the United States sold a broad range of shares.

The benchmark 225-issue Nikkei stock average finished the session down 225.03 points, or 2.69 percent, to close at 8,144.12 points — its lowest finish since March 15, 1983, when the index closed at 8,111.83 points.

Yesterday, the index shed 103.47 points, or 1.22 percent, to close at 8,369.15.

Tokyo traders monitored President Bush's prime-time news conference, in which he said the U.N. Security Council was "days away" from resolving the issue.

The dollar was trading at 117.35 yen at 3 p.m. today, down 0.05 yen from late yesterday in Tokyo and slightly below its late New York level of 117.36 yen. The dollar, which has lost ground from just less than 119 yen two weeks ago, has been pushed down by fears that a war in Iraq could disrupt the U.S. economy — a crucial cog in Japan's economic engine.

Japanese exporters are hurt by a stronger yen, which makes their goods less competitive overseas and lowers the value of their repatriated earnings.

Shares of key exporters led the decline today, including technology blue chips Sony and NEC, as well as automakers Honda and Toyota.

The broader Tokyo Stock Price Index closed down 20.05 points, or 2.46 percent, at 796.17 points. The TOPIX slipped 6.59 points, or 0.80 percent, to 816.22 yesterday.

On Wall Street yesterday, discouraging news on unemployment and heightening tensions with Iraq and North Korea sent stocks lower for the third day in four.