Japanese Nikkei Index Plunges More Than 300 Points Following Wall Street Losses
TOKYO (AP) -- Japan's Nikkei 225 index plunged more than 300 points in early trading Friday, following large losses in New York because of concerns about an end to interest rate cuts and a slowing U.S. economy.
The Nikkei 225 index was down 346.70 points, or 2.06 percent, at 16,523.70 about 35 minutes into trading in Tokyo.
Leading the spiral downward were banking shares, with Japanese megabank Mitsubishi UFJ Financial Group down 4.8 percent to 1,064 yen ($9.25) following a recent revision of its profit outlook on weak domestic lending.
The plunge in Tokyo came after shares in New York nose-dived Thursday, with the Dow Jones industrial average falling more than 360 points, or about 2.6 percent, as Wall Street reacted nervously to surging oil prices and a U.S. Federal Reserve warning on inflation.
The warning from the Fed, which cut interest rates earlier this week, triggered concern that it might hold off further rate cuts or even consider raising them if inflation accelerates.
Investors were also spooked by concerns of a slowing economy. A report from the Commerce Department showed U.S. consumers had scaled back their spending in September as worries mounted about a worsening housing market and further credit market turmoil. A trade group also reported that manufacturing in the U.S. grew in October at the weakest pace since March.
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TOKYO (AP) -- Japan's Nikkei 225 index plunged more than 300 points in early trading Friday, following large losses in New York because of concerns about an end to interest rate cuts and a slowing U.S. economy.
The Nikkei 225 index was down 346.70 points, or 2.06 percent, at 16,523.70 about 35 minutes into trading in Tokyo.
Leading the spiral downward were banking shares, with Japanese megabank Mitsubishi UFJ Financial Group down 4.8 percent to 1,064 yen ($9.25) following a recent revision of its profit outlook on weak domestic lending.
The plunge in Tokyo came after shares in New York nose-dived Thursday, with the Dow Jones industrial average falling more than 360 points, or about 2.6 percent, as Wall Street reacted nervously to surging oil prices and a U.S. Federal Reserve warning on inflation.
The warning from the Fed, which cut interest rates earlier this week, triggered concern that it might hold off further rate cuts or even consider raising them if inflation accelerates.
Investors were also spooked by concerns of a slowing economy. A report from the Commerce Department showed U.S. consumers had scaled back their spending in September as worries mounted about a worsening housing market and further credit market turmoil. A trade group also reported that manufacturing in the U.S. grew in October at the weakest pace since March.
Discuss Add this link to... Bury
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