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Tokyo stocks tumble on yen’s strength

JIJI

Stocks plunged Tuesday on the Tokyo Stock Exchange, hurt by the yen’s rise against the dollar.

The Nikkei 225 average tumbled 314.33 points, or 1.32 percent, to end at 23,469.39. On Friday, it shed 191.90 points. The market was closed Monday for a national holiday.

The Topix, which covers all first-section issues on the Tokyo Stock Exchange, finished 31.53 points, or 1.76 percent, lower at 1,761.12 after retreating 8.54 points Friday.

Both market gauges fell for the fourth straight session.

The higher yen battered export-oriented names, brokers said.

Yutaka Miura, senior technical analyst at Mizuho Securities Co., attributed Tuesday’s tumble to the yen’s rise as well as an overnight drop in the technology-heavy U.S. Nasdaq composite index.

Buying was held in check as investors retreated to the sidelines to see how U.S. stocks would perform later Tuesday, Miura said.

The impact of a system glitch that hit the TSE in the morning was “limited,” he said, noting that trading volume reached a decent level.

The TSE “was in a correction” phase following its recent surge, an official of a bank-linked securities firm said, while indicating that the correction is about to end.

Falling issues far outnumbered rising ones 1,823 to 247 in the first section, while 40 issues were unchanged.

Volume grew to 1.568 billion shares from 1.489 billion Friday.

Automakers Toyota, Honda, Subaru, Suzuki, Nissan and Mazda met with selling on the back of the yen’s strength.

Technology issues, including measurement equipment producer Keyence and semiconductor manufacturing equipment maker Tokyo Electron, were downbeat after their U.S. peers fared poorly Monday.

Also on the minus side were telecommunications and investment firm SoftBank Group and air conditioner maker Daikin.

By contrast, retailer FamilyMart Uny Holdings and clothing store chain operator Fast Retailing attracted purchases.