Investors dismayed by dwindling hopes of government financial support
dumped bank and brokerage shares on Wednesday, driving the key Tokyo stock market index
down more than five percent to close back below the psychologically important 16,000-point line,
brokers said.
The 884.11-point fall was the biggest points loss this year. The losses gained momentum in the
afternoon, led by shares shares like Yamaichi Securities Co Ltd, which plunged by its daily limit
due to concerns about the firm's financial health, brokers said.
The Nikkei average of 225 leading shares ended down 5.29 percent at 15,842.46.
Brokers said the market was hit by Prime Minister Ryutaro Hashimoto's denial on Tuesday
evening of report which had quoted him as saying he was considering the use of public funds to
support the financial sector.
"Then came the waves of selling which sent Yamaichi reeling, which in turn chilled the market
mood even more," said Yasuo Ueki, general manager at Nikko Securities. He added that the
halting in trade in Nikkei futures in Osaka in the afternoon due to technical trouble added to the
turmoil. Yeah, right!!!
Hopes for the use of public funds to support the financial sector had lifted the Nikkei index more
than 10 percent on Monday and Tuesday. These hopes shrivelled when Hashimoto told reporters
on Tuesday evening: "I have never said that public funds would be used. Please do not
misunderstand me."
Will they sell US treasuries soon?????? Or just keep printing??? |
