Nikkei closes at 15-month low

Source: Exec Digital USA

Date :11/12/2007 7:12:10 AM

Japan's Nikkei average fell to a 15-month low on Monday, hurt by the strong yen – at an 18-month high versus the dollar - and further subprime losses.

The Nikkei 225 Stock Average closed down 2.5 percent to a 15-month low of 15,197.09 whilst the broader TOPIX shed 2.54 percent to 1,456.40, their lowest since June 2006.

So far this year, the Nikkei benchmark has lost around twelve percent.

Brokers said that the Tokyo market was now “pricing-in a recession”, reflecting the recent subprime losses and the likely long-term effects on the nation’s exporters of a stronger Japanese currency.

Recession

On Friday, the Dow Jones industrial average fell 1.7 percent after major banks warned of further losses in their debt portfolios, raising investor concerns that the credit market slump shows no sign of abating.

Japanese traders on Monday sold exporter issues on a strengthening yen as automakers Honda and rival Toyota falling 3.58 percent and 2.76 percent, and Sony dropping 2.61 percent.

Other Asian markets also tumbled on Monday; the Hang Seng dropped 4.5 percent to 27,500.96 with Shanghai stocks also falling.

November 12 2007