TOKYO: Tokyo stocks closed 1.70 percent lower Tuesday following sharp overnight falls on global markets amid renewed worries about a plan to fix Europe's debt crisis.
The Nikkei index at the Tokyo Stock Exchange fell 152.87 points to 8,835.52 while the broader Topix index of all first-section issues lost 1.25 percent, or 9.56 points, to 754.50.
The Tokyo market was lower after European and US markets tumbled on Monday, dealers said.
After optimism swelled over Europe's outlook last week, "expectations have waned as the focus shifts to actually implementing the plan -- when banks can be recapitalised and whether additional funding can be secured for the European Financial Stability Facility," said Kazuhiro Takahashi, general manager of investment strategy at Daiwa Securities.
But the Tokyo selloff was milder as Japanese firms are less exposed to European government debt, Kenichi Hirano, operating officer at Tachibana Securities told Dow Jones Newswires.
China-exposed shares such as machinery maker Komatsu fell 1.82 percent to 1,940 yen after the release of weaker-than-expected China manufacturing data.
TDK jumped 3.66 percent to 3,390 yen a day after announcing it would cut its global workforce by 11,000, or roughly 12 percent. The electronic component maker also lowered its profit forecasts due to a strong yen, slowing demand and floods in Thailand that hit production at its factories in the country.
Honda was flat at 2,406 even after poor July-September results.
Following drops in European markets, the Dow Jones Industrial Average skidded 2.26 percent Monday over renewed worries about the eurozone debt crisis, which claimed its first major US casualty.
Brokerage MF Global filed for bankruptcy protection following a string of losses from European public debt holdings.
Market jitters were further heightened after embattled Greek Prime Minister George Papandreou called a confidence vote and a referendum on last week's EU debt deal, taking a political gamble to silence growing opposition to his policies.
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