Tokyo stocks slump

Tokyo stocks slipped 1.15 percent to a two-month low Friday after losses on Wall Street as traders grow concerned about the global economy while the head of the IMF warned over a eurozone recession. The Nikkei 225 index at the Tokyo Stock Exchange fell 178.38 points to 15,300.55, its lowest since mid-August, while the Topix index of all first-section shares lost 1.40 percent, or 17.69 points, to end at 1,243.09.
"It's been a disastrous week," said an equity trading director at a European brokerage. "Against the backdrop of worsening economic data from Europe and the potential volatility accompanying US earnings reporting season, many investors are simply anxious to close out positions and take a break before the upcoming three-day weekend." Japanese markets are closed on Monday for a national holiday.
Data showed Thursday that German exports slumped 5.8 percent, while four leading think tanks also slashed their growth forecasts for the eurozone's largest economy. Also Thursday, International Monetary Fund chief Christine Lagarde said there was a growing chance of the eurozone slipping back into recession if action is not taken to prevent it.
"The growth concerns are certainly legitimate, and the US has appeared to be the sole bastion of macro-economic health in the world. But even that may not be as legitimate as advertised," said Barclays equity strategist Hajime Kitano. On Wall Street, the Dow tumbled 1.97 percent, the S&P 500 shed 2.07 percent and the Nasdaq sank 2.02 percent. The uncertainty sparked buying of the safe-haven yen, which in turn put pressure on Japanese exporters.
The dollar, which touched a six-year high above 110 yen last week, was struggling at 107.81 yen in Asia Friday, compared with 107.84 yen late in New York. In stocks trade, heavily weighted Fast Retailing helped fend off a more severe decline in the Nikkei. Shares in the Uniqlo clothing stores operator closed up 1.70 percent at 37,890.0 yen after rising 1.5 percent Thursday on an upbeat outlook for its stores outside Japan. All Nippon Airways shares fell 0.81 percent to 242.9 yen, while Canon dropped 1.19 percent to 3,379.0 yen.