Tokyo Stocks Continue Decline Amid U.S. Credit Downgrade Worries

(MENAFN) Tokyo stocks continued their downward trend on Monday, marking their longest losing streak since early January, as investor sentiment was dampened by worries surrounding the impact of a recent U.S. credit rating downgrade by Moody's.

The Nikkei 225 index closed at 37,498.63, a decrease of 255.09 points, or 0.68 percent, from the previous trading day. The decline was attributed to concerns about the U.S. economy, weak U.S. stock futures, and lackluster performance in other Asian markets.

Despite some investors engaging in bargain-hunting with hopes for long-term gains, the prevailing downward pressure led to the Nikkei briefly falling by over 300 points during the trading session.

The strengthening of the yen to approximately 145 yen per dollar, following an increase in U.S. long-term interest rates, further contributed to selling pressure on Japanese equities.

The broader Topix index also experienced a decline, falling 2.06 points, or 0.08 percent, to close at 2,738.39.

On the Tokyo Stock Exchange Prime Market, the number of declining stocks, at 750, outnumbered the advancing issues, which stood at 826, while 55 stocks remained unchanged.

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