Nikkei Index Falls Again

Heavy selling of bank shares pushed the Tokyo Stock Exchange’s main index below the 18,000-point level Friday morning, extending a three-day decline that has pushed share prices to their lowest level in more than five years.

The 225-issue Nikkei stock average shed 387.80 points, or 2.12%, to end morning trading at 17,898.23. On Thursday, the average shed 295.76 points, or 1.59%, closing at 18,286.03, the lowest close since Dec. 2, 1986, when it ended trading at 18,190.97.

In the previous three days, the average fell a total of 1,383.28 points.

Traders said the sharp decline has increased concern about the financial health of Japanese banks, which have been relying heavily on their massive stock portfolios to meet reserve requirements.

The Tokyo stock price index of all issues fell 32.59 points, or 2.46%, closing the morning session at 1,289.29. The TOPIX lost 37.79 points, or 2.78%, on Thursday.