Tokyo: Stocks down 5% after US falls

TOKYO stocks fell more than five per cent on Friday after Wall Street shares tumbled over concerns about the US economy.

The benchmark Nikkei 225 index was down 5.02 per cent, or 1,913.16 points, to 36,213.17 about 30 minutes after the opening bell, while the broader Topix index was down 5.17 per cent, or 139.74 points, at 2,563.95.

Matsui Securities said there were “a series of factors weighing on the market, such as falls in US shares and the yen’s appreciation” against the dollar.

“The Japanese market is expected to start with sharp falls following declines in US stocks,” senior market analyst Toshiyuki Kanayama of brokerage Monex added.

The dollar fetched 149.22 yen in early Asian trade, down from 149.66 yen in New York.

The yen has strengthened since the Bank of Japan’s rate hike decision earlier this week and US Federal Reserve comments hinting at a rate cut as soon as September. AFP