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Nikkei tumbles to two-week low

Nikkei tumbles to two-week low
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First Published: Wed, Oct 17 2007. 03 00 PM IST
Updated: Wed, Oct 17 2007. 03 00 PM IST
Closing
Tokyo: Japan’s Nikkei average fell to a two-week low on the closing bell on Wednesday, 17 October, as financial stocks such as Sumitomo Mitsui Financial Group Inc continued to weigh after Wall Street slipped in the wake of poor bank earnings reports.
Sanyo Electric sank 6.1% after it said it had scrapped a plan to sell its struggling semiconductor unit. It was down 7.1% in the morning.
The benchmark Nikkei average ended down 1.1%, or 182.61 points, at 16,955.31, the lowest close since 1 October.
The broader Topix index was down by 1.5% at 1,600.29.
Sumitomo Mitsui Financial Group fell 5.8% to 823,000 yen and Mizuho Financial shed 3.8% to 607,000 yen. Mitsubishi UFJ Financial Group Inc lost 4% to 1,017 yen.
Morning
Tokyo: Japan’s Nikkei average fell 1.3% on Wednesday, 17 October, as banks such as Sumitomo Mitsui Financial Group Inc continued to be a major drag after Wall Street slipped in the wake of poor bank earnings.
Sanyo Electric sank 7.1% on news that it was giving up on the sale of its struggling semiconductor unit after private equity firm Advantage Partners LLP failed to secure funds for the deal amid tight credit markets.
Lingering concerns about subprime problems overshadowed better-than-expected results from US tech bellwethers Intel Corp and Yahoo Inc, which were otherwise considered a boost to the Tokyo market.
“It’s a bit surprising that the market does not react to good results by Intel,” said Yusuke Sakai, manager of equities trading at Mizuho Securities.
“We are seeing the Tokyo market very sensitive to negative news from Wall Street but not reacting to good news.”
Banks took a battering for a second day, following disappointing results from U.S. banks such as Wells Fargo & Co
Sumitomo Mitsui Financial Group fell 4.6% to 835,000 and Mizuho Financial shed 3.8 percent to 607,000. Mitsubishi UFJ Financial Group Inc lost 3.3 percent to 1,024 yen.
As of 0430 GMT, the benchmark Nikkei average was down 229.15 points at 16,908.77.
The broader Topix index was down by 1.8% at 1,596.25. Reuters
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First Published: Wed, Oct 17 2007. 03 00 PM IST
More Topics: Stocks | Nikkei | Topix | Sumitomo | Wells Fargo |