Stocks: Nikkei Closes Below 14,000 For 1st Time Since Nov 2005
TOKYO (Kyodo)--Japan's key Nikkei stock index closed below the 14,000 line Tuesday for the first time since November 2005 on a strong yen, tumbles in Asian stocks, and grim signals of greater fallout on Japanese companies from the U.S. housing meltdown.
The 225-issue Nikkei Stock Average shed 138.16 points, or 0.98 percent, from Friday to end at 13,972.63, the lowest level since Nov. 2, 2005, when it closed at 13,894.78. The market was closed Monday for a national holiday.
It also dipped below 13,973.03, the closing level at the launch of former Prime Minister Junichiro Koizumi's government on April 26, 2001, fueling anxiety that reforms carried out by the charismatic leader have stalled under current Prime Minister Yasuo Fukuda, brokers said.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 27.38 points, or 1.99 percent, to 1,350.20, the lowest level since Sept. 16, 2005.
Tokyo stocks fell mostly across the board with declines led by machinery, mining, oil and coal issues.
Brokers said the dollar's tumble to nearly a two-month low in the upper 107 yen level, weighed heavily on export-oriented automakers like Honda and Nissan.
Tsuyoshi Segawa, equity strategist at Shinko Securities Co., added, ''Tokyo stocks got embroiled in a downward trend of Asian equity markets'' in China and South Korea.
Bank of Japan Governor Toshihiko Fukui also fueled selling pressure by admitting in a speech Tuesday morning that the impact from the U.S. subprime mortgage crisis on domestic financial institutions has been growing beyond initial expectations.
Banking and securities issues shed 1.36 percent and 2.38 percent, respectively.
''Amid a jittery period ahead of U.S. earnings reports, Fukui's comments were effective in freezing buying momentum,'' said Yutaka Shiraki, senior equity strategist at Mitsubishi UFJ Securities Co.
Investors are bracing for further mortgage-linked losses ahead of fourth-quarter earnings report by major U.S. financial institutions, starting with Citigroup Inc. later in the day.
Of the 33 sectors on TSE, land transport and pharmaceutical issues advanced.
