Tokyo stocks fall sharply on failed US auto bailout plan, rising yen
12/12/2008 17:22
Tokyo stocks fell sharply today with investors were battered by the
failure of US congressional talks on a government bailout for the troubled Big
Three automakers.
The benchmark 225-issue Nikkei Stock Average lost 484.68
points, or 5.56 percent, from yesterday to 8,235.87. At one point, the Nikkei
fell by more than 7 percent.
The broader Topix index of all First Section
issues on the Tokyo Stock Exchange was down 35.88 points, or 4.22 percent, to
813.37.
Auto issues were among the hardest-hit species on Tokyo market, as
the US Upper House failed to secure a compromise deal to bail out the
cash-strapped Big Three automakers.
Investors believed the dive in Tokyo
market was also related to the US dollar's fall to a 13-year low against the
yen, which was in the 88 yen line. But in the late trading session, sharp losses
were trimmed after the dollar recovered to the upper 89 level.
Exporters also
suffered steep losses as their profits were eroded by the depreciating dollar.
Canon dropped 160 yen, or nearly 6 percent, to 2,590 yen, while Sony lost 118
yen, or nearly 6 percent, to 1,860 yen.
On the First Section, declining
issues outnumbered advancing ones 1,408 to 252, with 54 others remaining
unchanged.
Trading volume on the main section came to 3,028.81 million
shares, up from yesterday's 2,245.63 million. Volume leader Mitsubishi UFJ
Financial Group shed 16 yen, or over 3 percent, to 484 yen.
The TSE's Second
Section index was down 7.58 points, or 0.39 percent, to 1,923.23 on a volume of
42.90 million shares. On the Osaka Securities Exchange, the near-term March
Nikkei 225 index futures contract was down 390 points to 8,290.
Xinhua
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