Tokyo Stocks in Nose Dive

Growing pessimism over the Middle East set stock prices nose-diving in Tokyo today, while share prices finished modestly higher on London’s Stock Exchange.

The 225-issue Nikkei Stock Average lost 893.41 points, or 3.13%, ending at 27,615.73, its lowest level since Oct. 25, 1987.

Yoshio Ogawa, chief trader at Nikko Securities, said investors shied away from the market because they are increasingly pessimistic about the Middle East conflict, which they believe will be prolonged.

London’s Financial Times-Stock Exchange 100-share index rose 7.4 points, or 0.3%, to close at 2,244.9.

British investors appeared tired from the week’s erratic trading and uncertain over the market’s near-term direction, preferring to take to the sidelines until a clearer trend could be discerned, dealers said.