November 22, 2004
By Boris Schlosberg
Yahoo Finance
The U.S. dollar briefly pierced the 103 level overnight in Tokyo for the first time in more than four years. The dollar decline continued in the wake of G20 meeting that took place in Berlin this weekend. During the G20 meeting no concrete initiatives were proposed to halt the dollar's recent plunge against the majors. The USD/JPY ended Tokyo session relatively unchanged at 103.20.
The 225-issue Nikkei Stock Average lost over 233.45 points, or 2.11 percent, to close at 10,849.39. It was the biggest one-day decline in Japanese stocks this month. The broader Tokyo Stock Price Index of all First Section issues on the Tokyo Stock Exchange dropped 20.00 points, or 1.80 percent, to 1,089.77.
Stocks fell sharply from the start of trading as investors sold core high-tech and auto related shares including Toyota Motor and Sony after the dollar touched a low of 102.70 yen in New York on Friday. A fall in U.S. stocks on Friday and a sudden rise in crude oil prices was another factor contributing to the broad sell-off in Tokyo. The sharp fall in high-tech and auto shares ahead of the holidays in Tokyo and New York dampened overall sentiment and prompted selling in domestic demand-related issues
All of Japan's top four banking groups lost ground overnight in Tokyo. Mizuho Financial Group, the most heavily traded issue by value for the day, ended at 438,000 yen, down 8,000 yen, despite announcing earlier that its outstanding bad-loan balance was reduced for the past six months ago.
Marine transportation, pharmaceutical and real estate shares were leading decliners. Mining stocks remained the only bullish sector in Tokyo's trading.
The day's volume leader was Resona Holdings, down 2 yen to 182 yen.
Mitsubishi Estate plunged 36 yen to 1,199 yen after Osaka police raided company's headquarters and two other Mitsubishi group companies in Tokyo. Allegations against the company included concealing serious soil and water contamination and selling condominiums built on a polluted site in Osaka.
Decliners outweighed gainers 1,384 to 144, with 61 issues closing unchanged. Volume on the TSE's main section was slightly lower at 1,216.70 million shares from Friday's 1,234.28 million shares.
The TSE's Second Section index fell 31.82 points, or 1.07 percent, to 2,937.00 on a volume of 49.69 million shares. In Osaka, the near-term December Nikkei 225 index futures contract dropped 270 points to 10,830.
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