Tokyo: Japanese share prices tumbled 1.78% in morning trade on 8 July, hit by a fall on Wall Street and worries about more losses ahead inthe United States from the credit crunch, traders said.
The Tokyo Stock Exchange’s benchmark Nikkei-225 index was down 238.18 points at 13,121.86 by the lunch break. The broader Topix index of all first-section shares fell 20.27 points or 1.54% to 1,292.53.
“The overnight losses on Wall Street were weighing on the market’s mood,” Yutaka Miura of Shinko Securities told Dow Jones Newswires.
“There aren’t many fresh buying cues. Markets may not see much bargain-hunting,” Miura said.
Wall Street shares fell on 7 July as investors fretted about second-quarter earnings and the possiblity that the banking and corporate sectors could be further hit by the lingering credit squeeze.
Major US banks will begin releasing earnings reports next week. Japanese shares on Monday snapped a 12-session losing streak, the longest such run in more than half a century.