Japanese stocks fall to lowest in 10 weeks

Japanese stocks fell for the seventh time in eight days today following an overnight plunge on Wall Street.

Japanese stocks fell for the seventh time in eight days today following an overnight plunge on Wall Street.

The Nikkei 225 index shed 220.49 points, or 1.35 per cent, to finish at 16,087.18 points on the Tokyo Stock Exchange - the Nikkei's lowest closing since March 9th. The index rose 149.25 points, or 0.92 per cent, the day before.

Stocks tumbled in reaction to the drop on Wall Street, which fell yesterday on concerns that an increase in consumer prices meant more interest rate rises in the United States. The Dow fell 214.28, or 1.88 percent, to 11,205.61, a one-month low.

Blue-chip autos and electronics issues led the drop, along with oil and machinery stocks.

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Decliners included Canon, which fell 2.30 per cent to 8,070 yen ($72.70) and Honda Motor, which posted a 1.94 per cent drop to 7,600 yen. Nippon Oil tumbled 3.39 per cent to 826 yen ($7.44), and Ebara, a major machinery maker, dropped 6.05 per cent to 559 yen ($5.04).

Banking stocks also fell, with Mitsubishi UFJ Financial Group losing 3.49 per cent to 1.66 million yen ($14,954.95).

Internet service company Softbank rose 1.18 per cent to 2,920 yen ($26.31) on a day it announced establishing an equally owned joint venture with British mobile carrier Vodafone PLC, to develop mobile phones, services and content.