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Wednesday, September 12 4:21 PM SGT [3:21 AM CDT]

Tokyo stocks crash below 10,000 point mark
following US attacks

TOKYO, Sept 12 (AFP) - Stock prices in Tokyo fell 6.6 percent to
crash through the 10,000 point level Wednesday for the first time in
17 years following the horrific terrorist attacks in the United
States, brokers said. The Nikkei-225 index on the Tokyo Stock
Exchange plunged 682.85 points to end at 9,610.10, falling below the
psychologically-important 10,000 mark for the first time since August
1, 1984. It was the sharpest one-day drop since April 17 last year
when the headline index plunged 7.0 percent. "The situation is beyond
what we can handle," said Sakura Friend Securities broker Koichi
Kawata. The headline index breached the 10,000 mark minutes after
opening when it became the first major exchange to resume activity
Wednesday after global stockmarkets ground to a halt following the
devastating terrorist strikes in New York and Washington the previous
day. Some of Japan's major stocks were untraded with sell indications
only, brokers said, adding that selling pressure continued throughout
the day. The Topix of all issues on the first section of the stock
exchange fell through the 1,000-point level for the first time in
three years, down 67.32 points to 990.80. "Sony, NTT, DoCoMo,
Kyocera, all the major shares were untraded with selling indication
only, and they finished at those levels," Kawata said. "We really
want to know when this downward trend will end, but it does not
appear to be near," he added. The Tokyo Stock Exchange said the
maximum daily price fluctuation range was halved from normal levels
to reduce volatility in the wake of the terrorist attacks believed to
have killed thousands in New York and Washington. "We have nothing to
do but sell," said Jyujiya Securities dealer Masafumi Okamoto. "It is
uncertain what will happen next, or when it will end." Four planes
were hijacked in the United States overnight. Two crashed into the
World Trade Center in New York's financial heart, another into the
Pentagon in Washington and a fourth near Pittsburgh, Pennsylvania, US
authorities said. "The terrorist attacks overnight mean the loss of
the most important marketplace not only for US investors but also for
global investors," Shinko Securities equity strategist Tsuyoshi
Segawa said. "As Tokyo is still the second largest market following
the US market in terms of liquidity, investors may rush to hedge
their positions here in Tokyo, which may cause unimaginable falls,"
Segawa added. The attacks would increase the risk of a further
weakening of the already fragile US economy, dealers said. Okamoto
from Jyujiya Securities said it would be impossible to predict what
will happen to the local share market in the short-term. "We have not
experienced anything like this before. Segawa added there was
uncertainty about the likelihood of further attacks and how the US
administration would react. Among US-sensitive stocks, Sony Corp.
plunged by the new daily limit of 250 yen or 5.0 percent to close at
4,730 after it was untraded with sell indications only throughout the
day. Major consumer electronics firm Matsushita Electric Industrial
Co. was down 120 yen or 7.4 percent at 1,501. Japanese automakers
dropped as they said they stopped activities at their US factories
due to uncertain supplies of parts. Nissan Motor Co. Ltd. fell 50 yen
or 7.1 percent to 655 and Toyota Motor Corp. was down 6.8 percent at
3,400. Honda Motor Co. Ltd. slumped 5.2 percent to 4,590 yen. Top
Japanese automaker Toyota stopped operations at factories in three US
states Tuesday afternoon, saying it wanted to ensure the safety of
its employees and to remove the uncertainty over procurement of
parts. Honda and Mitsubishi Motors Corp. were considering stopping
their factories on Wednesday. Nippon Telegraph and Telephone Crop.
(NTT) fell 25,000 yen to 456,000. Oil stocks were higher, due to
rising crude oil prices after the attacks, with Arabian Oil 50 yen
higher at 928 yen and Cosmo Oil up three at 292. Japanese government
bond prices ended lower Wednesday. The yield on the 10-year No 234
issue ended the day at 1.435 percent, against 1.420 percent at
Tuesday's close. BNP Paribas chief strategist Koji Shimamoto said
flight-to-safety asset flows seen immediately after the open
following the news of the terrorist attacks was short-lived, with
deepening concerns over the future of the global economy adding to
speculation of a possible review of the structural reform policy in
Japan.