Japan stocks down 2.5%

Japanese shares fell 2.5 per cent to the lowest level in five months.

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Japanese shares fell 2.5 per cent to the lowest level in five months Friday following heavy losses on Wall Street and European markets, declines in Asia and as export-oriented issues were dragged down by a strong yen.

The benchmark Nikkei 225 Stock Average lost 224.52 points, or 2.51 per cent, to close at 8,719.24, the lowest since March 16.

The broader-based Topix index was down 15.62 points, or 2.04 per cent, at 751.69.

For the week, the Nikkei dropped 2.73 per cent and the Topix was down 2.15 per cent.

Both the Nikkei and the Topix declined further in the afternoon as other Asian markets fell. By midafternoon, South Korea's Kospi Index had plummeted 6.19 per cent and Hong Kong's Hang Seng Index had plunged 2.74 per cent.

Overnight, the blue-chip Dow Jones Industrial Average plunged 3.68 per cent amid renewed fears about the global economy.

The yen's strength hurt export-oriented issues as the Japanese currency stood close to a record high. Some major exporters such as Toyota Motor Corp, Honda Motor Co and Sony Corp fell to their lowest share price this year.

Toyota dropped 1.39 per cent, Honda plunged 3.34 per cent and Sony was down 3.16 per cent.

A stronger yen makes Japanese goods more expensive overseas and hurts repatriated earnings.

On currency markets at 3 pm (08:00 SA time), the dollar traded at 76.48-56 yen, down from Thursday's 5 pm quote of 76.58-59 yen.

The euro traded at 1.4295-4296 dollars, down from 1.4406-4406 dollars Thursday, and at 109.33-38 yen, down from 110.32-34 yen. - Sapa-dpa

Source: http://www.iol.co.za/japan-stocks-down-2-5-1.1121208

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