Summary Many of them recovered part of their early losses on bargain-hunting in afternoon trade
TOKYO (AFP) - Toshiba led losses in Japanese stocks Monday, with the troubled conglomerate plunging nearly 10 percent following a weekend report of an expected massive fiscal year loss -- which the company confirmed after the close of trading.
Exporters were under pressure as the yen strengthened against the dollar. Dealers also tracked a sharp sell-off on Wall Street while falling oil prices dented energy firms again.
Stocks fell sharply Monday morning in line with a broad Asian retreat as the euphoria surrounding Wednesday s US Federal Reserve rate rise wears off and worries about the global outlook return.
But many of them recovered part of their early losses on bargain-hunting in afternoon trade.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange sank 0.37 percent, or 70.78 points, to 18,916.02. The broader Topix index of all first-section shares was down 0.38 percent, or 5.82 points, at 1,531.28.
The Nikkei had dived more than two percent on Friday due to weak oil prices and disappointment with the Bank of Japan s unexpected tweaks to its stimulus programme.
Toshiba plunged 9.8 percent to 254.8 yen following the report in the Nikkei business daily that the scandal-hit firm was expected to report a net loss of about 500 billion yen for the year to March.
Immediately after the market closed on Monday, Toshiba announced it would post a record 550 billion yen ($4.5 billion) in red ink for the fiscal year.
Exporters were facing a sell-off as the yen picked up. The dollar was at 121.30 yen from 121.26 yen Friday in New York and well off last week s peaks above 123 yen.
The euro rose to 131.90 yen from 131.80 yen.
"The stock market drop in the US is signalling risk-off and this is being reflected in currencies," Shoji Hirakawa, chief equity strategist at Okasan Securities Co in Tokyo, said, according to Blomberg News. "Yen strength may continue for some time."
Investors are now awaiting the release later in the week of key US data, including on economic growth and existing-home sales, after the Fed rate move raised hopes the world s top economy was back on track.
In Japan inflation, jobs and spending figures are scheduled for release on Friday.
