Tokyo Stocks Gyrate Over East-West Thaw
The Tokyo stock market is hung over after over-indulging in optimism about the benefits of a more liberal Soviet Union, brokers said Wednesday.
“There was an overreaction on the way up, and there is an overreaction on the way down,” said George Nimmo, manager of equity sales at SBCI Securities (Asia) Ltd.
The Tokyo exchange rose more than any other global stock market outside West Germany late last year in reaction to the East-West thaw. Investors have been euphoric about the opportunities that might arise as the Iron Curtain opens and East and West come face to face.
The index tumbled Tuesday, partly on news of further troubles in Soviet Azerbaijan and fell again Wednesday, partly on unconfirmed rumors that Gorbachev will resign. The Nikkei closed 254.95 points lower at 37,696.51 on Wednesday after sliding back 343.50 on Tuesday.
