Japan stocks fall, led by exporters on yen

Tokyo, Nov 27: Japanese stocks fell on Tuesday, with exporters like Canon Inc leading a broad sell-off following the yen's sharp gain against the dollar and an overnight slide on Wall Street.

Bank shares were also hit, tracking falls in U.S. financial stocks amid renewed concerns for subprime problems.

''With the double whammy of decline on Wall Street and the strong yen, the Tokyo market cannot avoid a fall,'' said Takashi Ushio, head of investment strategy division at Marusan Securities.

Still, he said, Japanese stocks have fallen to the level at which investors find it hard to keep selling as valuation emerges as support.

''Even if hedge funds dump shares regardless of valuations, such selling will be over at the end of this month,'' he said.

As of 0045 GMT, the Nikkei slipped 1.8 percent to 14,868.24, while the broader TOPIX shed 1.9 percent to 1,439.27.

The dollar was traded at 107.42 yen after dropping to 107.23 yen late in New York, the lowest since June 2005, according to Reuters data.

Digital camera maker Canon dropped 2.3 percent to 5,450 yen and Honda Motor Co Ltd lost 1.7 percent to 3,580 yen.

Bank shares were also sold after a sharp rise in the previous session, tracking falls in financial shares on Wall Street on renewed credit woes.

Mizuho Financial Group Inc shed 2.9 percent to 535,000 yen, Mitsubishi UFJ Financial Group Inc lost 2. percent to 968 yen, and Sumitomo Mitsui Financial Group Inc dropped 3.3 percent to 840,000 yen.

Sumco Corp plunged 4.5 percent to 3,190 yen after the world's second-largest silicon wafer maker said on Monday its profit slipped in the nine months to Oct. 31.

Reuters
>