P. M. BRIEFING : Tokyo Stocks Take 2nd Plunge
The Tokyo Stock Exchange, normally one of the most stable markets in the world, suffered its second major collapse in a week today for its worst weekly downturn since the October, 1987, global stock crash.
The Nikkei Average of 225 selected issues plunged 935.87 yen, a loss of 2.6%, to close at 34,890.97 yen, its fifth-worst single-day decline in history. The Nikkei fell 1,161.19 yen on Wednesday, a 3.15% drop, and was up 92.51 yen Thursday.
The Nikkei stock average has lost 6.8% of its value in one week and 10.3% since Dec. 29, when it hit a record high.
Analysts and traders, predicting further falls in Tokyo next week, blamed the plunges on domestic factors involving high interest rates and strengthening of the U.S. dollar.
Economists who have long predicted a major correction on the Tokyo market, which streaked to record-breaking highs at the end of 1989, said other major foreign stock exchanges should have no reason for concern.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
