Tokyo stocks drop sharply on global risk worries

Tokyo stocks drop sharply on global risk worries
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Tokyo:Tokyo stocks dropped sharply in Tuesday morning trade with investors concerned by an array of geopolitical risks and cautious ahead of corporate earnings season.

The Nikkei 225 index was down 2.19 percent or 494.77 points at 22,120.05 at the break, while the broader Topix was down 2.07 percent or 35.01 points at 1,660.30.

“Geopolitical risks linked to the EU and the Middle East dragged down share prices, extending falls on New York’s Dow,” Okasan Online Securities said in a commentary.

The falls in Tokyo came after another volatile day of trading on Wall Street in which major indices extended losses, with the looming US congressional elections also making for rough seas.

“Selling hit financial stocks in New York, dampening sentiment,” said Mutsumi Kagawa, chief global strategist at Rakuten Securities.

“Caution has also risen due to recent rising volatility after New York stocks powered to their highest-ever levels and the Nikkei hit its 27-year high,” he said.

Market players are waiting for Japanese corporate results while watching US earnings results coming out now, he said.

The dollar fetched 112.57 yen in Asian trade, against 112.81 yen in New York.

In Tokyo, Sony was down 1.14 percent at 6,237 yen, telecom giant SoftBank was off 1.86 percent at 9,257 yen and chip-making equipment manufacturer Tokyo Electron was down 2.93 percent at 14,860 yen.

In New York, the Dow ended down 0.5 percent at 25,317.61.