Nikkei hits three-year low on Wall Street’s heavy selloff (Lead)

September 30th, 2008 - 2:25 pm ICT by IANS  

Lehman BrothersTokyo, Sep 30 (DPA) Japan’s benchmark Nikkei 225 Stock Average tumbled to a three-year low Tuesday after a massive selloff overnight on Wall Street.The benchmark Nikkei 225 Stock Average plunged 483.75 points, or 4.12 percent, to close at 11,259.86.

The broader Topix index of all first-section issues also fell 40.46 points, or 3.59 percent, to 1,087.41.

After a proposed, $700-billion rescue package was defeated in the US Congress, the blue-chip Dow Jones Industrial Average dropped 7 percent by the close of trading Monday.

Meanwhile, the Bank of Japan injected 2 trillion yen ($18.89 billion) into the money market Tuesday as an emergency measure to ease disruption in the financial markets.

Tuesday’s move marks the 10th consecutive business day of measures by the nation’s central bank since the US investment bank Lehman Brothers Holdings Inc filed for bankruptcy on Sep 15.

The total amount of liquidity the bank injected into the market comes to 20.1 trillion yen.

On currency markets at midday (0300 GMT), the dollar was quoted at 104.15-20 yen, down from Monday’s 5 p.m. quote of 106.14-15 yen.

The euro was quoted at 1.4345-50 dollars, down from Monday’s 5 p.m. quote of $1.4351-52, and at 149.45-50 yen, down from 152.33-37 yen.

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