BLBG: Japan Stocks Fall on Credit Concern; Topix Drops Below 1,000
By Masaki Kondo
Oct. 6 (Bloomberg) -- Japan's stocks dropped, driving the Topix index below 1,000 points for the first time since December 2003, after the global credit crisis deepened in Europe and the yen jumped, cutting the value of overseas sales.
Mitsubishi UFJ Financial Group Inc. plunged 9.2 percent after Germany agreed to rescue Hypo Real Estate Holding AG and BNP Paribas SA said it will take control of Fortis in Belgium and Luxembourg. Nintendo Co., which gets about 80 percent of its sales from overseas markets, lost 8.3 percent after the yen surged to its highest versus the euro since May 2006. Nippon Steel Corp. sank 7.8 percent on concern demand will wane.
``This is probably the worst market I've ever seen,'' said Hideo Arimura, who oversees the equivalent of $1.9 billion at Mizuho Asset Management Co. ``It's totally dark and there's nothing that prompts investors to buy stocks.''
The Topix fell 48.92, or 4.7 percent, to close at 999.05 in Tokyo. Only 93 of 1,714 members included in the index rose. The Nikkei 225 Stock Average declined 465.05, or 4.3 percent, to 10,473.09.
The Nikkei lost 8 percent last week, its biggest drop since August 2007, on concern the passage of a $700 billion bank bailout by the U.S. will fail to stimulate demand for Japan's exports. The benchmark is down 32 percent this year, set for its second straight annual drop.
To contact the reporter for this story: Masaki Kondo in Tokyo at email@example.com.