>>>what would happen if the Japanese started printing money ..would
that further inflated their account deficit..how could they lose?<<
They are printing...undermining stock market, of which Banks are large holders with assets collateralised to Nikkei values--- Nikkei down
solvency problems threat of Moody downgrade...
TOKYO, Dec. 8 (Kyodo) - Stock prices in Tokyo fell steeply Monday, pulled down by selling in domestic demand-oriented issues given a poor economic outlook.
The Nikkei average of 225 selected issues on the First Section plunged 292.91 points or 1.78% from Friday's close to 16,131.57, after moving between 16,110.29 and 16,515.68.
The broader-based Tokyo Stock Price Index (TOPIX), covering all issues on the First Section, declined 15.12 points or 1.22% to 1,221.31.
Turnover came to an estimated 430 million shares, down from Friday's 482.98 million shares.
Hokkaido Takushoku Bank was Monday's most actively traded issue.
With no major market-moving factors present on the fist day of the week, investors placed sell orders in a broad range of issues except a few blue chips.
While immediate worry over the health of Japan's financial system has diminished, players began to fret about the domestic economy.
A steep fall in the stock prices of steelmakers and heavy machinery makers reflected the sluggish economy, which was underlined by the weaker-than-expected economic growth for the July-September period, traders said.
''Many participants think the economy is likely to remain sluggish next year. They tend to sell issues oriented to domestic demand to hedge any risks,'' said Yoshihiko Kuroichi, manager of the product marketing division at Kankaku Securities Co.
Reduction of cross-shareholding in steelmakers also spurred the downturn, Kuroichi said.
Market participants will likely stay on the sidelines this week ahead of the ruling Liberal Democratic Party's economic stimulus measures and the Bank of Japan's Tankan business survey, to be released next week.
Yasuo Ueki, general manager of equities operations at Nikko Securities Co., said losing share prices in the steel and heavy machinery makers may be the result of the deteriorating economies in Asia, all major business partners with Japan.
In the afternoon, a large volume of selling by Daiwa Securities Co. and a losing futures index fueled the market downfall, traders said.
The depreciation of the yen's value against the U.S. dollar also dampened players' sentiment.
The dollar climbed to the 130 yen level in Tokyo for the first time since May 1992.
Traders said the weaker yen is part of a trend of ''Japan selling'' and does not benefit the stock market.
Foreign investors also sold issues linked to domestic demand, traders said.
Of the 1,329 issues listed on the First Section, retreating issues outpaced gainers 814 to 261 with 189 issues unchanged.
Among some 200 issues which renewed their lows for the year, many were domestic demand-related issues.
Nippon Steel tumbled to a year low of 199 yen, closing at 201 yen, down 18 yen. It fell below 200 yen for the first time in nearly 11 years.
Kobe Steel dipped to a year low of 97 yen, ending at 106 yen, down 5 yen. Kawasaki Steel briefly fell to a year low of 172 yen, finishing at 176 yen, down 20 yen. NKK closed at a year low of 114 yen, down 13 yen.
Textile maker Teijin dropped to a year low of 282 yen, ending at 286 yen, down 19 yen. Sumitomo Chemical fell to a year low of 373 yen, ending at 380 yen, down 30 yen. Kawasaki Heavy Industries dipped to a year low of 251 yen, closing at 258 yen, down 14 yen.
Volume leader Hokkaido Takushoku Bank fell 1 yen to 1 yen under the exchange's supervision.
In contrast, Honda Motor marked a record high of 4,930 yen, finishing at 4,890 yen, up 130 yen. NTT Data registered a record high of 7,010,000 yen, ending at 6,910,000 yen, up 230,000 yen.
The index for the Second Section sank 11.86 points to 1,263.30 on an estimated volume of 6.76 million shares.
Transmitted: 12/08/97 09:21 |
