Japan stocks tumbled a second day as the slowing global economy
dragged on export growth, and the yen jumped to a six-year high against
the euro.
Mazda Motor Corp. fell to a five-year low after
Japan's exports rose a third of what was projected for last month.
Olympus Corp., an endoscope maker that counts Europe as its biggest
overseas market, sank 11 percent as the euro's slide diminished
overseas sales. Inpex Corp., Japan's largest oil explorer, lost 7.1
percent after crude sank to a 16-month low. Tokyo Electric Power Co.
added 2.6 percent as investors flocked to companies deemed resilient
against an economic slowdown.
The Nikkei 225 Stock Average sank
213.71, or 2.5 percent, to close at 8,460.98 in Tokyo. The broader
Topix index fell 17.53, or 2 percent, to 871.70. Stocks rebounded in
the afternoon from a five-year low on a report the U.S. will move to
stem foreclosures.
The Nikkei has tumbled 45 percent so far this
year as the credit crisis triggered by the collapse of the U.S.
mortgage market slowed global economic growth. Stocks in the gauge
traded at 10 times trailing earnings, lower than the 18 price-to-
earnings ratio of the Standard & Poor's 500 Index, which retreated
to the lowest since April 2003 in New York yesterday.
Japan's
Finance Ministry today said the nation's exports rose 1.5 percent in
September, while economists had expected a 5.1 percent gain. The
government this week acknowledged that the world's second-largest
economy has probably entered its first recession in six years.
European
stocks fell for a third day after ABB Ltd.'s orders slowed, Daimler AG
cut its forecast and raw-material producers slipped on concern the
global economic slump will curb demand for metals.
ABB, the
world's largest builder of electricity grids, tumbled 18 percent after
saying projects are being delayed by the financial crisis. Daimler
slumped 1.3 percent as the world's second-biggest maker of luxury cars
suspended its share buyback program. BHP Billiton Ltd. and Rio Tinto
Group sank more than 6 percent as copper tumbled below $4,000 a ton.