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Nikkei tumbles to 26-year low

Mar 09 2009 09:45

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Tokyo - Japan's Nikkei stock index closed at the lowest level in more than 26 years on Monday as fears deepened about the health of Asia's biggest economy.

Investors were rattled by news that Japan logged its biggest ever current account deficit in January, the first month in the red in 13 years, as exports collapsed because of the global economic downturn.

The Nikkei-225 index has fallen 20% so far in 2009, after a record 42% slump last year.

The Nikkei slipped 87.07 points, on Monday to end at 7,086.03, the lowest closing level since October 6, 1982.

The broader Topix index of all first-section shares fell 10.86 points, to a fresh 25-year low of 710.53.

Japan's export-dependent economy has been hammered by a worldwide drop in demand for the cars, high-tech goods and machinery, putting it on course for the worst recession since World War II.

The Nikkei is more than 80% off its all-time high of 38,915 reached in December 1989 before the country's asset bubble burst, ushering in the "lost decade" of stagnant growth, recessions and deflation.

- AFP

 
 
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