AP News, April 2nd, 2007
Japanese stocks dropped Monday, led by exporters like machinery and auto issues, hurt by the release of a key survey showing worsening business sentiment among Japanese companies.
The benchmark Nikkei 225 index shed 259.24 points, or 1.50 percent, to finish at 17,028.41 points on the Tokyo Stock Exchange. On Friday, the index edged 0.14 percent.
Stocks initially rose after the Bank of Japan's quarterly "tankan" survey showed that the confidence index for large manufacturers slipped to 23 in March from 25 in December, the first drop in a year. The index measures the percentage of companies reporting that business conditions are better minus those reporting that conditions are worse.
Losers included autos and machinery stocks, with Mitsubishi Heavy Industries Ltd. posting a 3.81 percent decline to 733 yen ($6.21) and Toyota Motor Corp. falling 1.59 percent to 7,430 yen ($62.97).
Non-ferrous metals stocks also dropped, with Sumitomo Metal Mining Co. shedding 5.05 percent to 2,160 yen ($18.31). Among banks, Mizuho Financial Group Inc. fell 1.31 percent to 749,000 yen ($6,347.46).
Analysts said the survey may reflect concerns about a slowdown in the U.S. economy _ Japan's biggest export market _ and recent market volatility
The broader Topix index, which includes all shares on the exchange's first section, fell 31.12 points, or 1.82 percent, to 1,682.49. The Topix rose 0.17 percent, on Friday.
In currency dealings, the U.S. dollar was trading at 117.71 yen at 2:50 p.m. Monday, down from 117.87 yen late Friday in New York. The euro fell to $1.3354 from $1.3356.
