Nikkei Plunges Nearly 7 % on US Economy Fears

Thursday, November 20, 2008 at 12:27 pm

Nikkei Plunges Nearly 7 % on US Economy Fears Tokyo : Japan’s key Nikkei 225 Stock Average plummeted nearly 7 per cent, below the 8,000 level, Thursday as investors’ concerns mounted over the US economy, particularly the Big Three automakers’ financial fate.

The Nikkei 225 Stock Average tumbled 570.18 points, or 6.89 per cent, to close at 7,703.04.

The broader Topix index of all first-section issues also fell 45.15 points, or 5.46 per cent, to 782.28.

The Tokyo players dumped mostly export-oriented issues on the stronger yen and on Wall Street’s plunge overnight after the news about US legislators’ reluctance to provide a rescue plan to the three US automakers.

On currency markets at midday (0300 GMT), the dollar fell to 95.72-77 yen from Wednesday’s 5 pm quote of 96.73-75 yen.

The euro was quoted at 1.2510-15 dollars, down from Wednesday’s 5 pm quote of 1.2645-47 dollars, and at 119.75-80 yen, down from
122.32-36 yen. (dpa)