Tokyo shares close 0.39pc lower

TOKYO: Tokyo stocks lost 0.39 percent to close Wednesday at a two-week low amid continued anxiety over European debt.

The Nikkei 225 index at the Tokyo Stock Exchange fell 33.68 points to 8,519.13, its lowest closing level since November 30, after briefly dipping below the 8,500 mark.

The Topix index of all first-section issues sank 3.73 points or 0.50 percent to 736.98.

Sentiment is bearish with the euro's weakness against the yen and caution over potential downgrades to European debt, Hiroichi Nishi, general manager of the equity division at SMBC Nikko Securities, told Dow Jones Newswires.

In New York the Dow Jones Industrial Average lost 0.55 percent after the International Monetary Fund warned that Greece's economy was facing deep risks and the Federal Reserve refrained from providing any new spark for the economy.

Some major Japanese exporters lost ground as the euro fell below 102 yen for the first time since October. It fetched 101.64 yen in Tokyo afternoon trade, compared with 101.63 in New York late Tuesday.

Factory automation systems maker Fanuc fell 1.28 percent to 12,280 yen and Sony was down 1.51 percent at 1,365.

But Kenichi Hirano, operating officer at Tachibana Securities, said "the Nikkei will likely reflect solid fundamentals of Japanese firms going forward."