Japan's stock market continues losing; Nikkei hits 26-year low

Business Materials 28 October 2008 06:49 (UTC +04:00)

Tokyo stocks continued their losing streak Tuesday morning, sending the benchmark Nikkei 225 Stock Average to its lowest level in 26 years down to 7,000, dpa reported.

The Nikkei lost 67.76 points, or 0.95 per cent, to 7,095.14.

The broader Topix index of all first-section issues was also down 18.24 points, or 2.44 per cent, to 728.22.

The government decided to start regulating short-selling later Tuesday, which was earlier than the planned November 4, to help calm domestic stock markets, Finance Minister Shoichi Nakagawa said.

In short-selling, shares are borrowed and sold on speculation that their prices would fall so that investors can buy back the shares at a lower price later, which drives down the markets.

On currency markets at 9 am (0000 GMT), the dollar was quoted at 93.20-25 yen, up from Monday's 5 pm quote of 92.95-98 yen.

The euro was quoted at 1.2461-66 dollars, up from Monday's 5 pm quote of 1.2441-43 dollars, and at 116.13-23 yen, up from 115.65-69 yen.