Japan News:
Japan's Nikkei Falls More Than 2 Percent
Sunday January 22, 7:56 pm ET
Japan's Benchmark Stock Index Declines More Than 2 Percent in Early Trading As Unease Continues
TOKYO (AP) -- Japan's benchmark stock index declined more than 2 percent in early trade Monday as the market's unease continued over a criminal probe into prominent Internet company Livedoor Co.
The Nikkei 225 was down 326.94 points, or 2.08 percent, at 15,369.75 points by 9:30 a.m.
The index last week fell 4.6 percent, a stunning drop triggered largely by investors' anxiety over an investigation by public prosecutors into possible fraud at Livedoor, an Internet startup that has grown by acquiring dozens of other companies.
Traders also took a cue from Wall Street where stocks plunged on Friday on lackluster earnings from General Electric Co. and Citigroup Inc., while crude oil futures surged to more than $68 per barrel.
The Dow dropped 213.32, or 1.96 percent, to 10,667.39, the largest one-day decline since April 15, when the index slipped 1.9 percent. It was also the biggest one-day point drop since the Dow lost 307.29 on March 24, 2003. The Nasdaq dropped 54.11, or 2.35 percent, to 2,247.70.
Traders expect the Nikkei's downward trade to continue as the Livedoor probes continue.
The Tokyo Stock Exchange said Sunday that it will boost its trading capacity, but said it would keep shortened trading sessions after a flood of orders forced the bourse to curtail trading last Wednesday.
Following successful system tests over the weekend, the exchange -- the world's second-biggest -- said it can now handle 5 million transactions daily, up from the current 4.5 million.
The exchange will continue to shorten the afternoon session by 30 minutes, and will end trading if the number of trades hits 4.5 million, according to the bourse.
In currency trading, the dollar was at 115.16 yen on the Tokyo foreign exchange market at 9 a.m. Friday, down 0.10 yen from late Friday in New York. The euro rose to $1.2173 from $1.2137 late Friday in New York.
