Japan stocks dragged by tumbling China markets
TOKYO - TOKYO (AP) — Japanese stocks fell Wednesday as a decline in China's markets exacerbated concerns about the strength of the global economic rebound.
The benchmark Nikkei 225 stock average lost 80.96 points, or 0.8 percent, to a three-week low of 10,204. The broader Topix index fell 0.7 percent to 943.25.
The Nikkei slipped in and out of negative territory throughout the day in another volatile session despite a positive showing by Wall Street overnight. The Dow rose 0.9 percent to 9,217.94, lifted by stronger-than-expected retail earnings reports and the latest reading in housing.
Sentiment headed south in the afternoon as Shanghai's stock market sharply extended losses. The benchmark Shanghai Composite Index tumbled 4.3 percent to 2,785.58.
Real estate, banking and insurance issues led declines in Tokyo.
Investors sold Sony Corp. after the company said it would cut prices of its PlayStation 3. The company introduced a new version of the PlayStation 3 on Wednesday and lowered the price by about $100 worldwide.
The issue retreated 3.9 percent to 2,500 yen.
Sony's move, however, lifted third-party video game producers, whose titles stand to benefit from lower hardware prices. Square Enix Holdings Co., maker of the popular "Final Fantasy" series, jumped 2.7 percent to 2,285 yen.
"The domestic version of (Final Fantasy 13) will be playable only on a PS3, so expansion in the domestic PS3 user base could lift sales of FF13," said Credit Suisse analyst Yusaku Otsubo in a note to clients.
Also gaining was Sanyo Electric Co., which soared more than 10 percent to 247 yen. The Nikkei financial daily reported that Toyota Motor Corp. plans to buy Sanyo batteries for its hybrid vehicles.
In currencies, the dollar was trading at 94.29 yen from 94.70 yen late Tuesday. The euro stood at $1.4099 from $1.4131.
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