OVERSEAS : Japanese Stocks Dive Again; Nikkei Index Plummets 850.15

The Japanese stock market resumed its plunge early today: At midday, the Nikkei 225-stock index was down 850.15 points--or 2.8%--to 30,176.01.

Traders said initial profit taking prompted more investors to begin selling. However, trading overall was light, brokers said.

Some traders said investors were reacting defensively to talk from overseas that a major foreign brokerage had predicted that the Nikkei would tumble another 3,000 points. “People are very skittish now,” said a foreign broker.

The decline early today accompanied a firming of the dollar in Tokyo trading to the 157-yen level.

On Thursday, the Nikkei lost 237.41 points, or 0.75%, ending the day at 31,026.16.