Tokyo stocks plunge as yen's spike dents sentiment, exporters offloaded

Tokyo stocks closed more than 3 percent lower Monday, with the benchmark Nikkei index tumbling below the 16,000 mark and losing more than 4 percent in the morning, as the yen's appreciation against the U.S. dollar dented sentiment, sparking a selloff of exporter-linked issues.

The 225-issue Nikkei Stock Average tumbled 518.67 points, or 3.11 percent, from Thursday to end the day at 16,147.38.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, finished 40.59 points, or 3.03 percent, lower at 1,299.96.

Local brokers said that the central bank here opting to stay pat on monetary policy recently saw the yen rise against its U.S. counterpart, with market concerns exacerbated following Finance Minister Taro Aso saying over the weekend there was concern the yen was being unfairly manipulated by speculators.

All industry categories closed in negative territory on the main section, with marine transportation, glass and ceramic products, and electric appliance-linked stores comprising notable decliners.

The day's turnover was 2,623.9 billion yen (24.62 billion U.S. dollars). Markets in Tokyo were closed on Friday for a national holiday and will also be closed from May 3 and reopen on May 6 after the Golden Week string of national holidays. Endit