JAPAN: Japanese share prices go negative for the year as global sell-off continues

Tokyo's Nikkei 225 slides for the third day in a row, hits low for the year wiping out gains as investors remained cautious. The Nikkei average slid 1.33 percent on Friday (March 2) morning, erasing its gains for the year as investors remained cautious after a global market sell-off and continued strength in the yen. Exporters such as Toyota Motor Corp were among the decliners, hit by concern the stronger yen could curb their future earnings. The Nikkei was down 232.85 points at 17,220.66 by the close of the morning session, putting the benchmark average in negative territory for 2007. The yen was at 117.58 to the dollar after rising to a two-month high of 94 on Thursday (March 1). A stronger yen is a negative for Japan's exporters because it eats into profits when earnings from abroad are brought home. Individual investors such as retiree Hisao Fukushima said they were not too worried about this week's slide in stocks. "Fundamentally the economy is not doing bad so I expect this is an adjustment and it will go up again," he said. Trade was active, with nearly 1.2 billion shares changing hands during the morning session. Decliners beat advancers by a ratio of nearly five to one.

ITN Source | March 2, 2007

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