Tokyo stocks plummet on concerns over outlook for U.S. economy

Source: Xinhua| 2018-12-06 18:20:41|Editor: mmm
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TOKYO, Dec. 6 (Xinhua) -- Tokyo stocks plummeted on Thursday as European stocks sliding overnight on growing concerns over the outlook for the U.S. economy triggered a risk averse mood here.

The 225-issue Nikkei Stock Average dropped 417.71 points, or 1.91 percent, from Wednesday to close the day at 21,501.62.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, fell 29.89 points, or 1.82 percent, lower to close at 1,610.60.

European shares losing ground overnight set a negative tone for the market here, local brokers said.

Markets strategists said that concerns were rising about the outlook for the U.S. economy, which led to a risk off mood in Europe and sparked a sell-off here.

They also said a comparatively firm yen against the U.S. dollar also weighed on shares, particularly those of exporters.

Exporters cheer a weak yen versus other major currencies as their competitiveness and profits increase in overseas markets. The latter are augmented when repatriated on favorable exchange rates.

By the close of play, all industry categories in the main section closed in negative territory, with electric appliance, pharmaceutical and precision instrument-linked issues comprising those that declined the most.

Falling issues beat rising ones by 1,828 to 253 on the First Section, while 38 ended the day unchanged.

On the main section on Thursday, 1,510.21 million shares changed hands, rising from Wednesday's volume of 1,463.16 million shares.

The turnover on the penultimate trading day of the week came to 2,716.5 billion yen (24.10 billion U.S. dollars).