Tokyo, Nov. 11 (Jiji Press)–Stocks plunged on the Tokyo Stock Exchange Tuesday, as investors dumped export-oriented issues amid the yen’s appreciation while high-fliers among domestic demand- backedissues fell prey to profit-taking.<\/p>\n
“The key Nikkei average’s tumble was mainly due to a supply- demand factor, that is, position adjustment in reaction to excessive buying seen until mid-October,” said Tsuyoshi Segawa, equity strategist at Shinko Securities Co.<\/p>\n
The 225-issue Nikkei average closed down 297.50 points, or 2.8 pct, at 10,207.04. On Monday, the average dropped 124.44 points.<\/p>\n
The TOPIX index of all first-section issues finished down 26.06 points, or 2.5 pct, at 1,007.31. It ended down 11.78 points in the previous session.(MORE)Tokyo Stocks Plunge on Selling across Board<\/p>\n
Losing issues trounced gainers 1,283 to 183 on the first section, while 59 issues ended flat.<\/p>\n
Volume came to 1,353 million shares against Monday’s 939 million shares.<\/p>\n
Stocks got off to a soft start after U.S. stocks slipped for the second straight session Monday and foreign brokerage houses posted hefty net selling in preopening order placement.<\/p>\n
“Foreign investors have been taking a negative stance toward Japanese stocks,” said Norihiro Fujito, equity strategist at Mitsubishi Securities Co. “On top of position-adjustment selling by hedge funds ahead of their book closings, investors stepped up selling, watching scandals over some U.S. and European asset management firms’ improper trading of investment trust funds.”<\/p>\n
Also bruising the sentiment was sluggish performance of Internet- related issues caused by a weak earnings report by Internet business investor Softbank. After the market close on Monday, Softbank said it suffered the biggest ever group net loss in the April-September period, and the issue, a favorite pick of individual investors, scored a maximum allowable daily limit loss.<\/p>\n
Still, market watchers pointed out that economic fundamentals remain strong both in Japan and in the United States. As to closely watched machinery orders data, Mitsubishi’s Fujito said although machinery orders in September posted a decline, the trend is basically positive as the October-December estimates are up 12.0 pct.<\/p>\n
The Cabinet Office said in the afternoon that Japan’s seasonally adjusted key machinery orders in September were down 1.6 pct from the previous month. This compared with an average estimate of a 6 pct increase forecast by 13 economic institutues polled by Jiji Press.(MORE)Tokyo Stocks Plunge on Selling across Board<\/p>\n
Technology names were battered, including Tokyo Electron, Advantest, Sony, Toshiba and NEC.<\/p>\n
Amid the yen’s appreciation, selling also hit automakers like Toyota, Honda and Nissan.<\/p>\n
The megabanks of Mizuho, UFJ, Sumitomo Mitsui and Mitsubishi Tokyo succumbed to selling pressure, together with major brokerages Nomura, Daiwa and Nikko.<\/p>\n
Also lower were trading firms Mitsubishi, Mitsui and Sumitomo.<\/p>\n
A handful of winners included toy maker Tomy and game software developer Konami, both backed by their solid earnings.<\/p>\n
In index futures trading, the December contract on the Nikkei average finished down 310 points at 10,220 on the Osaka Securities Exchange.END<\/p>\n","protected":false},"excerpt":{"rendered":"
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