Japan stocks tumble, property stocks extend losses

Tokyo, Sept 6: Japanese stocks tumbled to their lowest level in a week on Thursday, with the broad TOPIX index down 2.3 percent, led by property shares and exporters after Wall Street and the dollar were hit by worries over U.S. economic health.

Concern about a slowing real estate market dragged shares such as Sumitomo Realty and Development Co down sharply, while bank shares continued to slide on lingering subprime debt worries.

Although there were some concerns in the market about another sharp drop, the downside was expected to be limited on Thursday, with the emergence of good news for steel firms, several of which will be updating their first-half outlooks later in the day, possibly helping to buoy shares.

"Bank shares are down again today, but should a reason to buy develop, such as positive news for steel companies, they may recover, helping to lead the overall market higher," said Hiroyuki Fukunaga, chief strategist at the research division Rakuten Securities.

"The outlook for property firms isn't quite so bright, and they may well remain weak," Fukunaga said.

Third-ranked Sumitomo Realty&Development Co Ltd dropped 5.7 percent to 3,320 yen, extending its losing streak into a fourth session, while No. 2 property firm Mitsubishi Estate Co Ltd fell 4.7 percent to 2,760 yen, extending its 3.8 percent decline from the previous day.

The Nikkei was down 1.9 percent or 306.25 points at 15,852, its lowest level since Aug 29. The broader TOPIX index was down 35.73 points at 1,533.74. Among banks, Sumitomo Mitsui Financial Group was down 3.6 percent at 841,000 yen and Mitsubishi UFJ Financial Group down 2.8 percent at 1.06 million yen.

Exporters were also hit, with firms such as Hitachi down 3.1 percent to 715 yen and Honda Motor down 2.6 percent at 3,730 yen.

Reuters
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