Japanese shares plunge on Libya turmoil
By DPA, IANSTuesday, February 22, 2011
TOKYO - Japanese stocks dropped nearly two percent in Tuesday morning trading as investor sentiment was hurt by turmoil in Libya.
The benchmark Nikkei 225 Stock Average lost 213.15 points, or 1.96 percent, to trade at 10,644.38 while the broader Topix index was down 17.46 points, or 1.79 percent, at 957.17.
Intensifying unrest in Libya, a major oil producer, prompted investors to sell shares to lock in quick profits after recent gains. On Monday, the Nikkei had extended its winning streak to six trading days.
A crackdown by Muammar Gaddafi’s security forces left hundreds of protesters dead and the military reportedly launched an airstrike Monday in the capital Tripoli.
Crude oil prices rose sharply on a Middle Eastern crude market in Tokyo with the benchmark July delivery price reaching 55,000 yen per litre, the highest since October 2008, Kyodo News reported.
Moody’s Investors Service said Tuesday it changed the outlook on Japan’s Aa2 rating to negative from stable, warning the government would not do enough to deal with the nation’s mounting public debt.
On currency markets at 9 a.m. (0000 GMT), the dollar traded at 83.07-08 yen, down slightly from Monday’s 5 p.m. quote of 83.12-13 yen.
The euro traded at $1.3681-3685, flat from $1.3681-3682 Monday, and at 113.66-67 yen, down slightly from 113.72-76 yen.
