Tokyo stocks ended sharply down Monday, the first trading day of fiscal 2013, as a disappointing business sentiment survey and a rise in the yen triggered broad selling targeting both domestic and exporter shares.
In Japan, the Nikkei 225 index collapsed 262.89 points, or 2.1%, to begin the second quarter at 12,135.02. On a percentage basis, it was the sharpest loss for the benchmark since March 22, and its first April 1 decline since 1995.
Markets in Australia, New Zealand and Hong Kong were closed Monday for the Easter holiday.
The major indexes opened in negative territory, hurt by a disappointing Bank of Japan tankan survey of business sentiment, which showed a smaller-than-expected lessening of pessimism among large Japanese companies in the last quarter.
The U.S. dollar also slipped against the yen, falling under ¥93, exacerbating the sell pressure as the day wore on.
Across-the-board selling took a toll on heavily weighted shares that had benefited from the recent market rise. Softbank Corp. lost 2.0% to ¥4,255, Shin-Etsu Chemical Co. dropped 4.2% to ¥5,990, Sony Corp. fell 4.3% to ¥1,572, and Takeda Pharmaceutical Co. Ltd. tumbled 5.0% to ¥4,780.
Among major auto makers, Honda Motor Co. Ltd. dropped 2.7% to ¥3,460, while Daiwa Securities Group Inc. led financial shares lower, with a 5.6% loss to ¥619. Marine shipper Kawasaki Kisen Kaisha Ltd. tumbled 5.0% to ¥189.
Railroad shares, normally defensive in nature, ranked among the worst performers on the board, with Central Japan Railway Co. closing down 5.1% at ¥9,410 after its president said at a news conference Friday that the government may introduce restrictions on foreign investment in the industry, as it did for airlines.
East Japan Railway Co. slid 5.8% to ¥7,270, while West Japan Railway Co. surrendered 7.2% to ¥4,190. Analysts said the sector reaction may have illustrated a knee-jerk reaction to the comments, exacerbated by the poor overall market performance.
In other markets;
The Shanghai CSI 300 Composite 300 index fell 1.90 points, or 0.1%, to 2,493.19
In Korea, the Kospi Index slumped 8.90 points, or 0.4%, to 1,995.99
In Taiwan, the Taiex Index slid 19.37 points, or 0.2%, to 7,899.24
The Singapore Straits Times Index lost 0.52 points to 3,307.58
