RTTNews - The stock market in Japan ended sharply lower on Tuesday, following losses on Wall Street, where the major indices slumped after World Bank reduced its forecast for 2009. The strengthening of the local currency against the US greenback also affected market sentiment, as investors sold off stocks amid renewed concerns about the pace and magnitude of global recovery.
In the U.S., the major averages declined sharply after World Bank's forecast s and warning that there will be a large decline in international capital flows amidst financial market fragility.
The Dow finished down by 200.72 points or 2.4% at 8,339, the Nasdaq fell by 61.28 points or 3.4% to close at 1,766 and the S&P 500 dropped 28.19 points or 3.1% to close at 893.
The Nikkei 225 Average opened sharply lower at 9,696 compared to its previous close of 9,826, and continued to drift further down on weak cues from Wall Street, lower commodity prices and gloomy outlook for the global economy. The index finally closed at 9,550, representing a loss of 276.66 points or 2.82%. The broader Topix Index of all first section issues ended at 902, down 20.79 points or 2.30%.
Light sweet crude oil futures for August delivery ended the Asian session down $0.33 at $66.60 a barrel. Yesterday, in New York , the July futures expired at $66.93 a barrel, down $2.52
Sumitomo Metal Mining, country's largest nickel producer, fell 6.16%. Among trading houses, Mitsubishi Corp. lost 5.31%, Mitsui & Co fell 4.55% and Sumitomo Corp., declined 5.01%.
Exporters and automakers declined on strengthening local currency against the US greenback. Digital camera maker Canon declined 2.80%, Advantest Corp. fell 5.58%, and Fanuc lost 3.89%. Among automakers, Nissan Motor lost 5.71%, Hino Motors fell 4.55%, Honda Motor declined 1.16% and Toyota Motor shed 2.45%.
Oil stocks declined on weaker crude oil prices. Inpex declined 4.41%, Nippon Oil slumped 4.62% and Showa Shell lost 3.63%.
Financial stocks also ended mixed. Mitsubishi UFJ lost 2.28%, Mizuho Financial fell 4.02%, and Sumitomo Mitsui declined 2.63%.
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