Stock Prices Skid in Tokyo

Stocks plunged here early today as investors fled the market on fears of higher oil prices and inflation.

The 225-share Nikkei index tumbled 512.69, or 1.7%, to 29,732.59 in the first 21 minutes of trading. By midday it had recovered some, and was off 291.71. The Nikkei lost 592.81 on Thursday, when news of Iraq’s invasion of Kuwait first hit. Japan is especially vulnerable when there is trouble in the Middle East because it imports all its oil.

Meanwhile, the dollar eased after an early jump in Tokyo trading. It peaked at 149.90 yen before falling back to 148.20.