P.M. BRIEFING : Japan Has Worst ’89 Stock Plunge
Stock prices collapsed in late trading today, with the Nikkei index plunging 489.9 points--the biggest one-day drop this year--on selling linked to currency and interest rate worries.
The key 225-share Nikkei index closed at 32,913.09 after gaining 189.44 points Wednesday.
“The environment is negative,” said Shigeru Akiba, head trader for UBS Phillips and Drew International. “Investors are worried the strong dollar means rising interest rates.”
The Nikkei index closed below 33,000 for the first time since April 24. The previous record 1989 one-day drop was 366.21 on March 20.
Turnover was a light 650 million shares against Wednesday’s extremely low 450 million.
The dollar broke through 150 yen for the first time since August, 1987, depressing market sentiment.
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