Tokyo's Nikkei and TOPIX tumble in sell-off

By Staff
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TOKYO, Feb 28 (Reuters) Tokyo's Nikkei average tumbled more than 3 percent on Wednesday as investors rushed to sell shares of everything from Sony Corp. to Softbank Corp. following steep losses on Wall Street.

The fall was greater on the TOPIX index, the broadest measure of the Tokyo stock market. The capital-weighted TOPIX plunged nearly 4 percent, hit by declines in Nippon Steel Corp. and other recent gainers.

The losses prompted the Tokyo stock exchange to temporarily suspend trade of TOPIX futures and limit arbitrage trade on the TOPIX.

''Everyone is waiting to see when the selling will stop,'' said Toshihiko Matsuno, assistant general manager of investment research department at SMBC Friend Securities.

''Every once in a while you see this sort of panic selling in the market. Until it settles down the movement is drastic. That's what we are facing now,'' Matsuno said.

The Nikkei was down 3.15 percent at 17,548.49 as of 0049 after earlier hitting 17,382.79. The benchmark was on track for its biggest one-day loss in eight months.

The TOPIX was down 3.8 percent at 1,742.45, after earlier falling as low as 1,719.15.

Trade in TOPIX futures was halted for 15 minutes until 9:22 a.m. after a large drop in prices, the Tokyo stock exchange said.

Softbank, a favourite of Japan's retail investors, was down 4.4 percent at 3,020 yen.

Sony fell 5.5 percent to 6,160 yen.

Nippon Steel dropped 5.1 percent to 793 yen.

REUTERS SBA RN0635

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