Markets today: Japan benchmark tumbles 4.8%
TOKYO -- Japanese stocks tumbled Tuesday, as Wall Street's losses, a stronger yen and the bleak outlook for earnings triggered selling in blue chip exporters and banks.
The benchmark Nikkei 225 stock average lost 422.89 points, or 4.8%, to finish at 8,413.91 on the first trading day of the week. Japanese financial markets were closed Monday for a national holiday.
The broader Topix index fell 4.8% to 814.12.
"The market was hit by multiple negative factors at once," said Kazuki Miyazawa, market analyst at Daiwa Securities SMBC, citing U.S. stock losses overnight, as well as the weaker dollar and sell-offs targeting companies with bleak earnings outlooks, such as Sony Corp.
On Monday, the Dow Jones industrial average fell 125.21 points, or 1.5%, to 8,473.97.
"Stock prices regained some ground in the first few days of this month but buying ... has lost steam," Miyazawa said.
The yen's strength against the dollar also prompted selling of exporters. A stronger yen hurts Japan's export-based economy as it lowers profits from goods sold abroad.
The dollar bought 89.27 yen late afternoon in Asia, down from 89.44 yen late Monday in New York. The euro was traded at $1.3273, down from 1.3352.
Electronics companies and automakers were hard hit. Sony was down 8.6% to 2,000 yen after media reports said it will post a $1.1 billion operating loss this fiscal year through March, its first since 1995. The company declined to comment.
