Japanese/Nat
Japanese stock prices fell sharply on Friday in line with an overnight plunge on Wall Street.
The U-S dollar dropped against the yen.
The benchmark 225-issue Nikkei Stock Average lost 204.51 points, or 1.26 per cent, to finish the day at 15,972.68. On Thursday, the Nikkei index shed 53.33 points, or 0.33 per cent.
But analysts still say that signs are that Japan is emerging from the economic doldrums.
Tokyo stock prices fell sharply on Friday morning, as investors dumped export-oriented shares such as telecommunications and electronics issues after their U-S counterparts fell sharply in New York.
On the stock market, investors worried about a possible slowdown in the U-S economy following Thursday's plunge in New York stock prices.
The Dow Jones industrial average sank 235.23 points on Wall Street overnight, its worst single-session decline of the year and its lowest level since April 20.
Analysts in Tokyo say the Nikkei Index drop reflected concern over the country's economy.
SOUNDBITE: (English)
"The drop in the stock market is I think, mainly due to the fact that people are still very uncertain about what is going to happen, so many investors are worried that perhaps the economy is not going to recover, and I think it reflects these worries."
SUPER CAPTION: Richard Werner, Managing Director and Chief Economist, Profit Research Centre
Investors were also discouraged by a stronger yen against the dollar.
A higher yen makes Japanese exports more expensive abroad and thus less competitive, cutting into earnings at export-led Japanese companies.
But analysts seem positive the worry will prove unfounded, and that the Nikkei Index will prosper.
SOUNDBITE: (English)
"The economic fundamentals are quite clear. The Japanese economy is beginning to emerge from its longest post-war recession and we have the first signs of a fundamental full-blown economic recovery, and of course, that is extremely positive and bullish for Japanese stocks. I think Japan's Nikkei-225 Index is going to break through 20-thousand within the coming calendar year."
SUPER CAPTION: Richard Werner, Managing Director and Chief Economist, Profit Research Centre
Later on Friday, domestic institutional investors began buying shares seen with strong earnings potential, pulling the market off its lows.
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