Japanese stocks plunged Monday amid uncertainty over tax
breaks for share investments, led down by financial and commodity
stocks and oil and machinery issues.
The benchmark Nikkei 225 index shed 365.79 points, or 2.27 percent,
to finish at 15,725.94 points on the Tokyo Stock Exchange — the
Nikkei's lowest closing since Sept. 26. The index has now fallen for
four trading sessions, including Friday's fall of 72.14 points, or 0.45
percent.
Mizuho Financial Group Inc. posted a 3.06 percent decline to 823,000
yen (US$6,974.58), Matsui Securities Co. dropped 8.42 percent to 772
yen (US$6.54), and personal lender Promise Co. fell 6.15 percent to
3,660 yen (US$31.04).
Oil company Inpex Holdings Inc. shed 3.43 percent to 902,000 yen
(US$7,644.07) and machinery maker Ebara Corp. sank 3.74 percent to 412
yen (US$3.49).
"People are waking up to the reality that last week's surprise
(Japanese gross domestic product) figures were export driven," said
Kirby Daley, a strategist with Societe Generale's Fimat brokerage unit.
"With U.S. housing figures looking flimsy, people are realizing there
just is no incentive to have bought Japanese equities; domestic demand
or exporters."
Separately, Taizo Nishimuro, president of the Tokyo Stock Exchange,
told reporters Monday that one of the reasons for the Tokyo market's
recent weakness is uncertainty over the future of tax breaks for share
investments by individuals.
"Because they think that the outlook for share prices is dark,
foreign shareholders have in recent days turned from net buyers to net
sellers," Nishimuro said.
