Wednesday 8 October 2008

Nikkei tumbles 9.4 pc in biggest 1-day fall since 1987

The Nikkei average plunged 9.4 per cent on Wednesday, its biggest one-day drop since the 1987 stock market crash, as fear spread of a global
recession, fueled by expectations of a slide in profits at Toyota Motor Corp and a firmer yen.

Panic over the fast-spreading financial crisis dragged down markets across Asia, with Japanese steelmakers such as Nippon Steel Corp sliding, as the Nikkei set another five-year closing low. "The deteriorating outlook for the economy and the deepening financial crisis are pushing fear to its limit," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management.

"Investors want to dump shares as their willingness to take risks has shrunk, but no one wants to buy even if stocks are valued cheaply." The yen climbed to a six-month high against the tumbling US dollar, as investors stampeded away from stocks and risky positions.

Source: EconomicTimes

Posted by Harsh at 01:12

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