Roundup: Nikkei plunges 3.96 pct to 6-month low in volatile trade

Tokyo stocks lost ground Tuesday, with the Nikkei index falling almost 4 percent to a 6-month low in a day of volatile trade as other Asian bourses' losses expanded, which also weighed on markets here.

The 225-issue Nikkei Stock Average lost 733.98 points, or 3.96 percent, from Monday, to close the day at 17,806.70, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange, having swung in and out of positive and negative territory, finally ended up 48.22 points lower, or 3.26 percent, at 1,432.65.

Local traders highlighted the fact that stocks opened sharply lower in the morning session as overseas markets lost ground overnight. The market lost 4 percent before clawing its way back into positive territory in the afternoon session.

Japan's Chief Cabinet Secretary Yoshihide Suga said in a press conference that the government will take the "necessary policy steps to deal with the global plunge."

Japan's Economy Minister Akira Amari tried to calm the jitters earlier Tuesday, stating that in terms of global picture, the situation on Asian bourses was not as bad as the worst-case- scenario that some analysts had been alluding to, and called for cool heads to prevail.

"The foundations of the global economy have not been shaken -- a cool-headed approach is needed," Amari told reporters.

Finance minister Taro Aso, for his part, gave no clues as to if and when further stimulus packages will be unrolled to underpin the domestic economy, but said the ministry is in regular contact with the G7 nations over the markets' recent swings.

As for the specific catalysts that caused Tuesday's swings, some analysts said no single one theme could be pinpointed.

On currency markets, the U.S. dollar was changing hands at 119. 17 yen in late afternoon trading, up from 118.51 yen logged in New York, following its retreat to 116.18 yen -- its lowest level since February.

Among Japan's major exporters, Toyota skidded down 3.85 percent to 6,725 yen, while Mitsubishi Motors dropped 6.5 percent to 871 yen. Mazda Motor, meanwhile, fell 5.7 percent to end the day at 1, 934 yen.

Consumer electronic giant Sony lost 0.32 percent to close at 2, 834 yen and Nikkei heavyweight Fast Retailing, operator of the Uniqlo chains of high street apparel stores, relinquished 5.75 percent to 47,975 yen.

Toho Zinc tumbled 7.5 percent to 298 yen and steelmaker Pacific Metals lost 6.5 percent to finish at 316 yen.

Air transportation issues advanced Tuesday, however, as falling oil prices mean cheaper fuel for carriers, and Japan Airlines gained 1.6 percent to finish at 4,155 yen.

Trading volume on Tuesday jumped to 4.74 billion shares on the Tokyo Exchange's First Section, up from Monday's volume of 3.94 billion shares, with declining issues pummeling advancing ones by 1,751 to 116. Endi