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Nikkei Closes Below 11,000 for First Time in 17 Years
Nikkei Closes Below 11,000 for First Time in 17 Years
The key Nikkei Stock Average closed below the psychologically important 11,000 line for the first time in nearly 17 years Wednesday, as Japanese investors became worried by signs of a further delay in the U.S. economic recovery.
The 225-issue Nikkei, which fell 85.61 points Tuesday, tumbled an additional 209.64 points, or 1.87%, to close at 10,979.76, ending below 11,000 for the first time since Oct. 20, 1984.
The broader Tokyo Stock Price Index (TOPIX) of all First Section issues was down 23.39 points, or 2.03%, to 1,126.86.
The TOPIX index hit a new closing low for the year, but it was still about 20% higher than its post-bubble closing low of 980.11, logged Oct. 15, 1998.
The tumble followed heavy overnight losses on Wall Street. The tech-laden Nasdaq composite index fell 47.43 points, or 2.48%, to close at 1,864.98 on Tuesday, while the blue-chip Dow Jones Industrial Average dropped 160.32 points, or 1.54%, to 10,222.03.
In addition, Japanese investors feared that a second report on the closely watched U.S. gross domestic product data for April-June quarter, to be released later in the day, may be downgraded to further illustrate the delay in the recovery of the world's largest economy.
Brokers said they have yet to see any signs that Tokyo stocks have hit bottom.
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