TOKYO: Tokyo stocks on Thursday tumbled 2.22 percent to a near five-month low on a stronger yen following sell-offs in New York and Europe that were fuelled by fears about the global economy and the Ebola epidemic.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange lost 335.14 points to finish at 14,738.38, the lowest close since late May, while the Topix index of all first-section shares slipped 2.30 percent, or 28.17 points, to 1,195.50.
Investors scrambled for safety after the US and European losses that followed US data showing a fall in retail sales as well as producer prices, which raised fears the world's top economy is feeling the effects of weakness in the rest of the world.
The figures also dampened expectations the Federal Reserve will raise interest rates from record lows any time soon -- as had been expected -- which in turn sent the dollar lower against the yen, which is bad for Japanese exporters.
In New York the Dow fell 1.06 percent, the S&P 500 shed 0.81 percent and the Nasdaq eased 0.28 percent.
Equity markets in Britain, France and Germany closed more than two percent lower.
On Thursday in Tokyo, the dollar bought 106.19 yen, against 105.91 yen in New York Wednesday afternoon, but it was sharply down from 107.33 yen in Tokyo earlier Wednesday. The greenback has fallen about three percent against the yen since breaking 110 yen at the start of October.
The Nikkei has lost almost 9.0 percent since the start of the month.
"We still can't say where the bottom is but there is a feeling now that the selling may have run its course," said Hirokazu Kabeya, senior strategist at Daiwa Securities.
Adding to unease on global markets is the spread of the Ebola virus to the United States. President Barack Obama held a crisis meeting with top aides at the White House on Wednesday after a second infection was diagnosed at a Texas hospital where a Liberian man died a week ago.
He pledged a "much more aggressive" response at home to the disease but insisted the risk of a serious outbreak on US soil was low.
Japan Display, the world's biggest maker of screens for smartphones and tablets, dived 18.22 percent to 359.0 yen after it announced a domestic plant closure and warned of an annual loss due to slackening demand in key markets including China.
Toyota shares fell 1.85 percent to 5,879.0 yen, a day after the world's biggest automaker said it would recall 1.67 million vehicles globally over brake problems and other glitches that pose a fire risk.
However, temporary staffing company Recruit Holdings rose 7.4 percent to 3,330.0 yen on its stock market debut after an initial public offering worth nearly $2.0 billion.
Japan Airlines dropped 4.29 percent to 2,697.0 yen while rival All Nippon Airways lost 3.68 percent at 232.3 yen amid global fears over air travel following the Ebola outbreak. (AFP)
