TOKYO: Japanese stocks slumped as the Federal Reserve’s decision to keep U.S. interest rates near zero weighed on financial shares and exporters.
Electrical appliance makers, banks and automakers were among the biggest drags on the Topix index, with all but one of the 33 industry groups dropping. Dai-ichi Life Insurance Co. tumbled 3.7 percent. Toyota Motor Corp. lost 1.4 percent. Sumitomo Mitsui Financial Group Inc. fell 1.9 percent after the lender’s credit rating was cut by Standard & Poor’s following its downgrade of Japan.
The Topix lost 1.4 percent to 1,470.67 as of 12:38 p.m. in Tokyo, with almost four shares falling for each that rose. The measure is headed for a 0.7 percent drop this week before markets close from Monday through Wednesday for holidays. The Nikkei 225 Stock Average dropped 1.3 percent to 18,184.96. The yen traded at 119.99 per dollar after strengthening 0.5 percent Thursday as the Fed’s decision drove down the greenback.
