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Tokyo stocks tumble as Japan's political woes weigh on market.

TOKYO, June 2 Kyodo

Tokyo stocks plunged Thursday morning, battered by a sharp drop in U.S. stocks overnight on disappointing economic data and by Japan's growing political uncertainty in the face of a no-confidence vote against Prime Minister Naoto Kan's Cabinet.

The 225-issue Nikkei Stock Average dropped 150.74 points, or 1.55 percent, from Wednesday to 9,568.87. The broader Topix index of all First Section issues on the Tokyo Stock Exchange shed 13.93 points, or 1.66 percent, to 825.48.

Thirty-two out of 33 sectors on the TSE fell, with the fishery and forestry sector being the lone gainer. Decliners were led by the miscellaneous sector that includes game giant Nintendo, followed by the transport equipment and mining sectors.

Stocks tumbled from the outset, with the Nikkei index temporarily falling over 2 percent, as U.S. manufacturing and employment data for May undershot market forecasts, fanning concerns about a slowdown in the U.S. economic recovery, brokers said.

The market was also dragged down by the no-confidence vote against Kan's Cabinet scheduled in the afternoon as it spelled further political uncertainty, however the outcome turns out, they said.
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Publication:Japan Weekly Monitor
Geographic Code:9JAPA
Date:Jun 6, 2011
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