This photo shows the Tokyo Stock Exchange. (Mainichi)
TOKYO (Kyodo) — Tokyo stocks dropped sharply Monday morning, with the Nikkei index briefly falling over 2 percent, hurt by steep Wall Street losses late last week and a firmer yen against the U.S. dollar following weaker-than-expected U.S. jobs data.
The 225-issue Nikkei Stock Average fell 664.63 points, or 1.63 percent, from Friday to 40,134.97. The broader Topix index was down 41.13 points, or 1.39 percent, at 2,907.52.
The dollar briefly fell to around the 147 yen line in early morning trading after weakening sharply in New York on Friday as U.S. employment data for July showed a slowdown in the labor market, fueling speculation that the Federal Reserve would cut interest rates soon, dealers said.
At noon, the dollar fetched 147.78-80 yen compared with 147.34-44 yen in New York and 150.53-55 yen in Tokyo at 5 p.m. Friday.
The euro was quoted at $1.1576-1577 and 171.07-11 yen against $1.1580-1590 and 170.82-92 yen in New York and $1.1418-1420 and 171.88-92 yen in Tokyo late Friday afternoon.
The Nikkei stock index briefly slid below the 40,000 threshold for the first time in about two weeks as an increase in U.S. nonfarm payrolls fell short of market expectations, while the figures in May and June were revised down sharply.
Exporter-oriented auto and machinery shares were sold on a stronger yen, which decreases exporters’ overseas profits when repatriated.
The market was also weighed down by financial stocks, as hopes for improved profits receded after long-term interest rates declined.
AloJapan.com