JAPAN: Japan stocks fall more than two percent after morning trading, hit by a strengthening yen and global credit crunch fears

Record ID: 1537651

  • Title: JAPAN: Japan stocks fall more than two percent after morning trading, hit by a strengthening yen and global credit crunch fears
  • Date: 17th August 2007
  • Summary: VARIOUS OF ELECTRONIC STOCK PRICE BOARD CLOSE UP OF NIKKEI AT 15873.51 MORE OF ELECTRONIC BOARD
  • Embargoed: 1st September 2007 13:57
  • Keywords:
  • Location: Japan
  • Country: Japan
  • Topics: Information,Economic News
  • Reuters ID: LVA58S5T85L9SCHMHTPXCBLBPKJN
  • Aspect Ratio: 4:3
  • Story Text: Fears of a global credit crunch has boosted the yen and pressured the Tokyo bourse index down more than two percent in morning trade.
    The Nikkei average fell 2.3 percent on Friday (August 17) to hit its lowest point in nearly nine months, with exporters such as Toyota Motor Corp.
    hammered on a surge of the yen, overshadowing a rebound in financial shares following a rise in their U.S. peers recently battered by concerns over the subprime market turmoil.
    The Nikkei has fallen 13.8 percent since its year-high hit in late February, as of Friday's morning session. For the year to date, the benchmark has lost 8.4 percent.
    The benchmark Nikkei finished the morning session down 376.10 points at 15,772.39, the lowest point since Nov. 28, 2006.
    The broader TOPIX index lost 2.4 percent or 36.91 points to 1,530.55, also hitting its lowest point since late November.
    Shares of automaker Toyota Motor and other major exporters fell sharply after the yen hit a 14-month peak of about 112 yen against the dollar on Wednesday, threatening to cut into profits made by exporters outside Japan.
    The yen was being whipped around sharply by speculators and investors grappling with the massive market moves the previous day. By late morning it was around 113.30 yen, still higher than Toyota's 115 yen to the dollar assumption for the current business year to March 2008.
    Trade was moderate with 1.1 billion shares changing hands on the Tokyo exchange's first section, almost in line with last week's morning average of 1.3 billion shares. Declining stocks outnumbered advancers by a ratio of nearly seven to one.
    On the street, Japanese office workers worry about further falls.
    "As many traders will keep a wait-and-see stance for a while, I think the stock price will remain in an unstable condition in the longer term even though prices could rebound on a short term basis," said 61-year-old stock trading instructor Mitsuo Fukui.
    Some even showed concern that sharp stock falls could exert a negative impact on Japan's real economy.
    "This sharp drop in stock is likely to have an adverse affect on our daily lives. I am a little worried about it," said Naomi Kashirajima, 43-year-old nurse.
    "I am afraid the price could drop further. I don't think this trend of sliding price will stop soon," added 56-year-old company employee, Wataru Hamanaka.
    ENDS.
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