Tokyo shares open sharply lower after Wall St tumbles on rate cut disappointment |
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Wed, 12 Dec 2007 01:39
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TOKYO (Thomson Financial) - Japanese shares opened sharply lower Wednesday following a tumble on Wall Street overnight after the Federal Reserve lowered its interest rates by 0.25 percentage points, disappointing some investors who had expected a bolder move.Most economists had been expecting a quarter-point cut in the benchmark federal funds rate to 4.25 percent, but some investors were hoping for a half-point cut at the Fed's final meeting for the year.The Fed also cut the discount rate, or the rate it charges to lend directly to banks, by a quarter-point to 4.75 percent.In New York, the Dow Jones Industrial Average lost 294.26 points or 2.1 percent to 13,432.77.Japanese stocks were lower across the board, with banks and exporters the most notable losers.The dollar was last trading at 110.84 yen, more than 1 yen lower from the upper 111 yen levels seen late Tuesday. A stronger yen is expected to dampen sentiment for exporters.At 9.14 am (0014 GMT), the blue chip Nikkei 225 Stock Average was down 311.87 points or 1.9 percent at 15,732.85.The broader Topix index was down 30.30 points or 1.9 percent at 1,536.72.(1 US dollar = 110.84 yen)masami.hachisu@thomson.com-hm/ng/hm/ngCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Taipei shares outlook - Higher on technical rebound, Wall St gains 