Tokyo stocks plunge almost 5 pct in morning on global growth concerns

Tokyo stocks plunged Tuesday morning, with the benchmark Nikkei falling nearly 5 percent at one point, as investors piled into the yen as a safe haven driving up its price on consternation about a global economic slowdown, compounded by an equities rout overnight in the the U.S. and Europe.

The 225-issue Nikkei Stock Average lost 836.09 points, or 4.92 percent, from Monday to end the morning at 16,168.21.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, dropped 69.46 points, or 5.03 percent, to 1,310.95.

Local brokers said the market opened lower on a downbeat mood mirroring sentiment on trading floors in the U.S, and Europe, with losses quickly widening as the yen's appreciation accelerated.

The Japanese currency was changing hands around the 117 yen line versus the U.S. dollar on Monday, but the greenback dropped below the 115 yen mark for the first time since Nov. 2015 in the morning here on Tuesday.

As of noon, the dollar was quoted at 114.80-81 yen compared with 115.79-89 yen in New York and 117.32-34 yen in Tokyo at 5 p.m. Monday.

The euro, meanwhile, fetched 1.1216-1217 dollars and 128.77-78 yen against 1.1189-1199 dollars and 129.64-74 yen in New York and 1.1137-1138 dollars and 130.66-70 yen in Tokyo late Monday afternoon.

Traders said the dollar's slide was sparked by sell-offs on major in the U.S and Europe, with the yen often a preferred choice as a safe currency haven in times of economic turbulence or severe market jitters, which drives its value up versus its major counterparts.

"The combination of concerns that the United States could be heading toward a recession and the global stock sell-off is curbing risk appetite and is sending investors to the safe-haven yen," said Daiwa Securities Co.'s Takuya Takahashi.

The strategist said financial-linked issues in particular led the sell-off following pressure exerted on the sector from bourses in the U.S. and Europe.

Prices for oil continuing a downward trajectory also did little to improve a dire market mood in Tokyo Tuesday morning, as a continued slide in prices overnight in New York added to concerns that global economic growth is slowing.

The market's losses were expanded, traders also said, by investors pushing up the safe-haven 10-year Japanese government bond.

By the morning break, the key bond yield hit 0 percent as investors bought debt following the Bank of Japan saying last month it would adopt a negative interest rate.

The yield, however, in the afternoon, turned negative for the fist time ever, as more debt was bought.

Financial issues comprised notable decliners, with Nomura Holdings tumbling 10.8 percent to 500.10 yen, while Mitsubishi UFJ Financial Group dropped almost 8 percent to 495.80 yen.

Falling oil prices also saw resource and energy-linked issues duly retreat, with oil exploration giant Inpex Corp. losing 4.9 percent to 980 yen by the morning break.

On the First section, issues that lost ground outpaced issues that advanced by 1,881 to 36. Enditem