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Japan 18yr low { September 2 2002 } Original Source Link: (May no longer be active)    http://www.reuters.com/news_article.jhtml;jsessionid=U2VU4YNQAAWFYCRBAEZSFEY?type=businessnews&StoryID=1400440 http://www.reuters.com/news_article.jhtml;jsessionid=U2VU4YNQAAWFYCRBAEZSFEY?type=businessnews&StoryID=1400440 Tokyo's Nikkei Hits 18-Year Low Last Updated: September 02, 2002 11:51 PM ET Print This Article By David McMahon TOKYO (Reuters) - Tokyo's Nikkei average dropped to an 18-year low on Tuesday as tech-related shares led a broad-based decline sparked by growing concern about the sustainability of Japan's fragile economic recovery. "Market sentiment is absolutely awful right now. Stocks look very cheap at these levels but nobody is ready to buy yet," said Masaharu Sakudo, an adviser at Tachibana Securities. The Nikkei dropped 1.67 percent or 159.10 points to 9,362.53 after falling as far as 9,269.10. On November 10, 1983, it closed at 9,244.24. The capital-weighted TOPIX index shed 1.61 percent to 915.40, its lowest since December 1984. "It was only a matter of time until we fell this low," said Masanori Hoshina, head of global portfolio marketing at BNP Paribas. "Part of our weakness lies in concerns about the cloudy economic outlook in the U.S. But the key problem is that there are still no signs of a sustainable economic recovery in Japan," he added. Data on Friday showed the Japanese economy grew at a faster-than-expected 0.5 percent in the April-June quarter, but industrial production fell unexpectedly for the second straight month in July and other data showed deflation worsening. Declines in prices make it harder for Japanese companies to service their mountains of debt, adding to pressure on banks. High government debt levels are also a worry. "With a public debt of around 140 percent of GDP, the Japanese government doesn't have many cards left up its sleeve," said Hiroshi Nishiyama, senior portfolio manager at SG Yamaichi. "But the perception is growing that this government's economic reforms are going nowhere. Without some decisive action, such as a cut in the consumption tax to rev up spending, I can't be optimistic about the outlook for stocks." BANKS BATTERED Against such a backdrop banks were pummelled. Mizuho Holdings Inc, the world's largest bank by assets, plunged 7.23 percent to 231,000 yen and was the highest traded issue by value on the first section of the Tokyo Stock Exchange. Rival UFJ Holdings Inc slipped 4.18 percent to 252,000. Japan's megabanks have large holdings of stocks on their books and falls in the stock market eat into their capital base, increasing fears of financial instability. Japan's high-tech exporters were also hit hard. Consumer electronics giant Matsushita Electric Industrial Co Ltd dropped 3.05 percent to 1,369 yen, while rival Toshiba Corp shed 2.25 percent to 391 yen. Another notable loser was Tokyo Electric Power Co Inc (TEPCO) , which extended its losing skid to six straight sessi Another notable loser was Tokyo Electric Power Co Inc (TEPCO) , which extended its losing skid to six straight sessi ons and was down 1.46 percent on the day at 2,360. Shares in Japan's biggest power utility have come under heavy pressure since it said last week that it may have failed to accurately report cracks in its reactors. Traders say that a string of recent scandals in corporate Japan has helped undermine market sentiment and depress trading volume in recent weeks. Trading edged up on Tuesday, with 354.13 million shares changing hands on the first section, the highest morning total since August 23. Decliners overwhelmed gainers 1,314 to 83. WALL STREET EYED Monday was a holiday in the U.S. and traders say many market participants are waiting for a lead after Wall Street reopens. Nasdaq futures were down one percent at midday in Tokyo, indicating a weak opening for U.S. stocks later. The Institute of Supply Management (ISM) releases its monthly manufacturing index on Tuesday, which will give a reading on the state of the U.S. manufacturing sector. The figure will be keenly watched by Japanese investors as Japan's fragile economic recovery is reckoned to be dependent on the sustainability of robust exports to its biggest trading partner, the United States. © Copyright Reuters 2002. All rights reserved. Any copying, re-publication or re-distribution of Reuters content or of any content used on this site, including by framing or similar means, is expressly prohibited without prior written consent of Reuters. Quotes and other data are provided for your personal information only, and are not intended for trading purposes. Reuters, the members of its Group and its data providers shall not be liable for any errors or delays in the quotes or other data, or for any actions taken in reliance thereon. © Reuters 2002. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world. www.reuters.com

Asia bankers gear up china stock deals { August 28 2003 } Asian stocks slide india halted { April 2004 } Bank of japan predicts continued deflation China gdp 20 percent bigger than expected { December 13 2005 } China losing protections for poor { January 15 2006 } China raises interest rates for first time in 9 years China replaces us { June 28 2002 } China says 2005 surplus near 102 billion China toy sweat shops China widens role in latin america { November 20 2004 } Downgrade for japanese economy Economic damage seen in asia after terror Foreign direct investment in china hits records India buys 1b in asian bonds Japan 18yr low { September 2 2002 } Japan 19yr low Japan europe concerned for dollar slide Japan markets two days plunge { January 19 2006 } Japan pursuing weak yen policy { August 27 2003 } Japan vm prefers bonds local currency { August 15 2003 } Japanese stocks plunge april 2005 { April 18 2005 } Japanese yen gains against dollar Rural healthcare dies as china wealth grows { January 14 2006 } Tokyo nikkei 20 yr low { April 11 2003 } Tokyo stocks fall 5 percent Files Listed: 25

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