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Tokyo stocks fall on Wall Street slump, bearish view of global economy+
(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, Aug. 20_(Kyodo) _ Tokyo stocks fell Wednesday morning, extending their losses from Tuesday, with investors unnerved by sharp losses on Wall Street and a pessimistic global economic outlook.
The 225-issue Nikkei Stock Average lost 36.51 points, or 0.28 percent, from Tuesday to 12,828.54. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 6.31 points, or 0.51 percent, to 1,229.23.
Declines were led by sea transport, rubber product, and transport equipment issues. Major gainers included mining and real estate issues.
The Tokyo market remained weak throughout the morning as the plunge in New York stocks, due partly to inflation worries, and a rebound of crude oil futures in New York weighed on investor sentiment and triggered heavy selling among financials and export-oriented issues, brokers said.
Hiroichi Nishi, equities chief at Nikko Cordial Securities Inc., said Tokyo stocks are falling because there is a reverse trend in the external environment that has recently shown signs of improvement. Nishi was referring to falling oil prices, gains in U.S. stocks, and a weaker dollar.
"On top of that, worries about the U.S. financial sector are resurfacing, and the economic outlook for Japan, the United States, and even emerging economies like China is deteriorating," Nishi said.
But Tokyo stocks are unlikely to go into a freefall as the market was underpinned by the buying of oil and resource-related shares, which benefited from the rebound in crude prices.
Other investors hunted for cheap shares after the stock plunge the previous day, brokers said.
Crude oil futures on the New York Mercantile Exchange rebounded Tuesday to $114.53 a barrel, up $1.66 from Monday and finishing higher for the first time in four trading days.
Copyright ? 2008 Kyodo News International, Inc.
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