World News >> Finance >> Business >> Japan stocks fall to fresh 26-year low after Dow closes at 11-year low
Japan stocks fall to fresh 26-year low after Dow closes at 11-year low
THE ASSOCIATED PRESS 2009-03-02 20:42:00
TOKYO - Japanese stocks fell to a fresh 26-year low Tuesday after the Dow Jones industrial average closed below 7,000 for the first time in more than 11 years on growing fears over the health of the U.S. financial sector.
The benchmark Nikkei 225 stock average tumbled 104.82 points, or 1.44 per cent, to 7,175.33 in the morning trade, extending further losses after a 3.8 per cent drop Monday. That marked a fresh 26-year low for the Nikkei, which closed at 7,114.64 on Oct. 7, 1982.
The broader Topix index also fell 1.67 per cent to 722.32.
"Investors are becoming nervous about the state of the U.S. financial sector. They were worried about deteriorating assets in the U.S. financial sector," said Kazuhiro Takahashi, equity strategist at Daiwa Securities SMBC Co. Ltd.
Investors were jittery after insurer American International Group Inc. reported a staggering $61.7 billion in quarterly losses, sparking fresh fears about the health of the U.S. financial system. The worries pressured the Dow, which fell 299.64, or 4.24 per cent, to 6,763.29. The Dow last closed below 7,000 on May 1, 1997.
The U.S. credit crisis and recession have slashed more than half the average's value since it hit a record high over 14,000 in October 2007. And now many investors fear the market could take a long time to regain the lost 7,000.
Apart from AIG's massive losses, investors were spooked as HSBC PLC, Europe's largest bank by market value, said Monday it needs to raise $17.7 billion. The company reported a 70 per cent drop in 2008 earnings and said it would cut 6,100 jobs.
The benchmark Nikkei 225 stock average tumbled 104.82 points, or 1.44 per cent, to 7,175.33 in the morning trade, extending further losses after a 3.8 per cent drop Monday. That marked a fresh 26-year low for the Nikkei, which closed at 7,114.64 on Oct. 7, 1982.
The broader Topix index also fell 1.67 per cent to 722.32.
"Investors are becoming nervous about the state of the U.S. financial sector. They were worried about deteriorating assets in the U.S. financial sector," said Kazuhiro Takahashi, equity strategist at Daiwa Securities SMBC Co. Ltd.
Investors were jittery after insurer American International Group Inc. reported a staggering $61.7 billion in quarterly losses, sparking fresh fears about the health of the U.S. financial system. The worries pressured the Dow, which fell 299.64, or 4.24 per cent, to 6,763.29. The Dow last closed below 7,000 on May 1, 1997.
The U.S. credit crisis and recession have slashed more than half the average's value since it hit a record high over 14,000 in October 2007. And now many investors fear the market could take a long time to regain the lost 7,000.
Apart from AIG's massive losses, investors were spooked as HSBC PLC, Europe's largest bank by market value, said Monday it needs to raise $17.7 billion. The company reported a 70 per cent drop in 2008 earnings and said it would cut 6,100 jobs.
Comments
Related Articles
Other Articles By This Writer
