Nikkei loses 1.6 percent in morning session on Wall Street slide
Dateline: Tokyo, 15 August 2007
Date: 08/15/2007 08:33 AM
1. Various of trading inside the Tokyo stock exchange
Asian shares dipped in Wednesday morning trading, unable to shake off the global jitters about the possible damage a US credit crunch might bring to financial markets.
The Nikkei, the benchmark for Tokyo stocks, lost 1.6 percent to 16,577.39 in the morning session, taking its cue from a further slide on Wall Street overnight.
In Hong Kong, the blue chip Hang Seng Index lost 2.7 percent in morning trade to 21,407.35.
Meanwhile, in New Zealand, the NZX-50 fell to its lowest level this year, dropping as much as 1.7 percent to 3998.59 during the day.
Traders in Tokyo said bargain-hunting there may keep Japanese stocks from plunging too much.
Some analysts also say market sentiment in Tokyo remains upbeat as worries about sub-prime mortgages in the US may make it less likely the Bank of Japan will raise interest rates later in the month.
But the market remains uncertain, with investors unsure just how much Japan is at risk over the US mortgage crisis.
Worse still, fears are growing about the future of the overall US economy.
On Tuesday, US retailers announced lower profit forecasts, including Wal-Mart Stores Incorporated and Home Depot Incorporated.
Overnight in the US, the Dow shed 1.57 percent to 13,028.92, on the verge of falling below the psychologically important 13-thousand mark, which it first crossed in late April.