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TOKYO: Japanese share prices fell sharply for a
second straight day Wednesday, hitting a two-week low below the key
17,000 points level amid renewed nervousness on global markets,
dealers said.
Sentiment was undermined by
overnight falls on Wall Street, where investors were unnerved by
soaring oil prices and concerns about the fallout from problems in
the US mortgage sector, they added.
Sharp losses in the Indian
market, triggered by a regulatory proposal to restrict buying by
overseas investors, also dampened sentiment.
The Tokyo Stock Exchange’s
benchmark Nikkei-225 index of leading shares fell 182.61 points, or
1.07 percent to 16,955.31, the lowest close since October 1.
The broader Topix index of
all first-section shares dropped 24.96 points or 1.54 percent to
1,600.29.
Decliners outnumbered
gainers 1,376 to 280, with 63 issues unchanged.
Volume increased to 2.31
billion shares from 1.91 billion shares Tuesday.
“Sentiment seems to have
turned slightly weaker amid US subprime issues,” said Toshihiko
Matsuno, senior strategist at SMBC Friend Securities.
“The market has taken a
breather after recent gains and the falls in India’s market seem
to have further dragged down Japanese shares,” he said.
The Mumbai market plunged
more than nine percent on the proposed buying restrictions.
Investors also remained
nervous about the impact from the US housing downturn and a related
credit squeeze.
Hedge funds, hit by recent
credit market turmoil, “may be itching to cash in their holdings
at relatively favorable prices,” said Masatoshi Sato, a strategist
at Mizuho Investors Securities.
“The fast-paced rebound
in Asian markets in the last few sessions may have prompted them to
sell, especially ahead of the G7 meeting,” he said.
Finance ministers and
central bank chiefs from the Group of Seven major economies meet
from Friday in Washington and are expected to discuss recent market
turmoil caused by problems in the US mortgage sector.
Banking and securities
shares were the major decliners in Tokyo. Mitsubishi UFJ Financial
fell 42 yen or 4.0 percent to 1,017 yen and Sumitomo Mitsui
Financial Group declined 51,000 yen or 5.8 percent to 823,000 yen.
Resona Holdings dropped 15,000
yen, or 7.5 percent to 186,000 yen and Shinsei Bank was down 23 yen,
or 6.6 percent at 328 yen.
Nomura Holdings fell 115 yen, or
5.6 percent to 1,955 yen, Daiwa Securities gave up 52 yen, or 4.4
percent to 1,126 yen and Mizuho Investors Securities dropped five
yen, or 2.6 percent to 188 yen.
--AFP
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