Tokyo stocks plunge with Nikkei suffering biggest fall in over 3 years

TOKYO, July 12 (Xinhua) -- Tokyo stocks ended sharply lower on Friday with the Nikkei suffering its biggest one-day point drop in more than three years, as a stronger yen against the U.S. dollar and a sharp drop in U.S. tech shares overnight prompted investors to lock in recent gains.

Japan's benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, ended down 1,033.34 points, or 2.45 percent, from Thursday at 41,190.68, posting its steepest fall since Feb. 26, 2021.

The broader Topix index, meanwhile, finished 34.61 points, or 1.18 percent, lower at 2,894.56.

The U.S. dollar briefly plunged by over 4 yen to hit a three-week low of 157.40 yen in New York, as a softer-than-expected June consumer price index fueled expectations for an interest rate cut by the Federal Reserve.

On the stock market, the yen's overnight surge spurred selling of export-oriented electronics and auto shares, and investors unloaded heavyweight semiconductor issues as the tech-heavy Nasdaq index plunged overnight, analysts said.

Some investors were concerned about the yen's sharp gain, as speculation about Japan's yen-buying intervention overnight raised fears of another intervention during a three-day weekend through Monday in the country, they said.

Market watchers here noted that the Nikkei's sharp decline is primarily due to a market correction following the benchmark index's surge of over 1,400 points in the past three trading days.