Tokyo stocks tumbled Wednesday amid lingering jitters over bearish U.S. equity markets, sending the benchmark Nikkei index to a sub-10,000 close for the first time in five months.
The 225-issue Nikkei stock average fell 267.91 points, or 2.62 percent, to close at 9,947.72. The broader Topix index of all first section issues on the Tokyo Stock Exchange shed 16.20 points, or 1.63 percent, to close at 976.63.
The Nikkei last closed below the psychologically important 10,000 mark on Feb. 20. The Topix also ended the day at its lowest level since Feb. 20.
After opening lower, large-lot selling of Nikkei 225 index futures put intense pressure on cash stocks in the afternoon, sending the average as low as 9,901.09.
The Nikkei failed to gain steam as investors took a wait-and-see stance amid concern that U.S. stocks could suffer further drops later in the day and the yen may begin firming again against the U.S. dollar, brokers said.
The Nasdaq 100 index futures on the Globex 24-hour trading system turned downward in the afternoon, leading market players to unload more shares, they added.
"Even after the Nikkei sank below 10,000, bargain-hunting by institutional investors was not as strong as the market had expected," said Hiroichi Nishi, equities general manager at Nikko Cordial Securities Inc.
The dollar's failure to climb toward 118 yen after hitting 117.59 yen in the morning may have led investors to suspect that the U.S. currency could again slide to the 116 yen level, which could disrupt Japan's export-led recovery, Nishi said.
Masatoshi Sato, senior strategist at Mizuho Investors Securities Co, said, "It was not a surprise to see the Nikkei fall below 10,000 as the U.S. economy -- Japan's largest export market -- appears to remain sluggish, especially the high-tech sector."