By DPA
Tokyo : Japan’s benchmark Nikkei 225 Stock Average plunged more than 700 points or 5 percent Tuesday on fears of a global credit crunch caused by the US subprime home-loan crisis.
The Nikkei index lost 752.89 points or 5.65 percent to end at 12,573.05, the lowest closing since September 2005.
The broader Topix index of all first-section issues also fell 73.79 points or 5.7 percent to 1,219.95, which is the lowest closing figure since August 2005.
Following Tuesday morning’s market plunge, Japan’s economic and fiscal policy minister said the government would continue to closely monitor the stock prices.
Minister Hiroko Ota said at a press conference that the losses at the Tokyo market were affected by the US subprime mortgage crisis.
But the government would not take any immediate action, Ota said.
Japan’s central bank, in the meantime, decided to keep the key short-term interest rate unchanged at 0.5 percent at its two-day policy meeting amid heightening concerns over a possible global recession.
On currency markets at midday, the dollar traded at 106.36-41 yen, up from Monday’s 5 p.m. quote of 106.33-35 yen.
The euro was quoted at $1.4447-52, down from Monday’s quote of $1.4537-39, and at 153.69-74 yen, down from 154.58-62 yen.