Japan stock market week to Oct 27, 2008

Tokyo share prices plunged in the week ended October 27. The Nikkei 225 tumbled 20.5% to close at 7,162.90, the lowest in 26 years since October 7, 1982, renewing the post bubble low, while the Topix index dropped 19.5%. The market opened higher but accelerated the downswing afterwards because investors were worried that the US economic downturn could cause a slowing of world economies for longer than expected. The yen's rise against the US dollar, euro and other currencies caused both international and domestic players to become cautious about earnings prospects of leading Japanese companies reliant on exports. The market did not receive encouragement from a report about the framework of the Japanese government's emergency measures to stabilize financial markets through purchases of bank-held equities. The pharmaceutical index fell 12.9%, but still outperforming the market.