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The Honolulu Advertiser
Posted on: Friday, January 4, 2008

U.S. economic uncertainty drags down Japan market

Associated Press

TOKYO — Japanese stock prices plunged to their lowest finish since July 2006, losing ground after jittery trading on Wall Street amid concerns about the U.S. economy and rising oil prices.

Japan's Nikkei stock index was down 616.37 points, or 3.96 percent, to 14,691.41 points on the Tokyo Stock Exchange at the end of a half-day shortened session.

The exchange had been closed since Monday for the New Year's holidays. The exchange resumes full-day trading next Monday.

Wall Street closed narrowly mixed yesterday after share prices dropped sharply the previous day on weaker-than-expected data for the U.S. manufacturing sector and record oil prices.

The Dow Jones industrial average rose 12.76, or 0.10 percent, to 13,056.72 yesterday, as oil set a fresh trading record of $100.09 a barrel.

Worries about the economy in the United States — a key export market for Japanese manufacturers — as well as the dollar's weakness against the yen sent export-oriented shares down. Decliners included Toyota Motor Corp., Nissan Motor Co. and Sony Corp.

Rising oil and raw material prices also took their toll on exporters, while giving commodity stocks a boost.

Thirty-two of the Topix index's 33 subsectors were down.

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