Japan shares slump 1.25pc on strong yen

TOKYO: Japanese shares lost 1.25 percent Thursday as a strong yen continued to encourage selling, with global economic uncertainty deflating investor spirits.

The Nikkei index of the Tokyo Stock Exchange lost 113.50 points to 8,943.76, the lowest close since March 15, when the Tokyo bourse plunged in the wake of the March 11 earthquake and tsunami and a subsequent nuclear accident.

The Topix index of all first section shares fell 1.20 percent or 9.34 points to 767.31.

"Selling, particularly of auto shares, is accelerating on the back of concerns about a slowdown in the global economy and the firmer yen," Monex market analyst Toshiyuki Kanayama told Dow Jones Newswires.

Japan's recovery could slow if the yen stays near the record high level, hurting exporters, while the US and European economic outlook stays uncertain, economists have said.

The yen stood at 76.65 to the dollar as it moved within a narrow band but still near the record post-war high of 76.25 marked in March.

Copyright AFP (Agence France-Presse), 2011