Selling panic closes Tokyo market

Japanese shares have taken a dive on the back of Livedoor's troubles
Tokyo's stock exchange closed early for the first time in its history on Wednesday, in a bid to head off a meltdown after a frantic day's trading. The move was sparked by heavy selling in shares following allegations of fraud at internet firm Livedoor.

The exchange suspended share dealing at 1440 local time (0540 GMT) - 20 minutes early - as the number of transactions threatened to breach trading capacity.

Japan's Nikkei share index ended down 3% and European markets followed suit.

The Nikkei closed down 464.77 points at 15,341.18, having earlier sunk as low as 15,059.52. Shares in Japanese technology stocks including Advantest, Canon and Toshiba were hit particularly hard.

The number of transactions had reached about 4 million by 1425 local time, close to the exchange's capacity of 4.5 million trades per day.

The unprecedented early closure of the Tokyo stock market sent shockwaves through European exchanges in morning trade.

London's leading FTSE 100 index was quoted down almost 1% at 5,648.

Germany's Dax index fell nearly 1.5% to 5,382, while the Paris Cac 40 index dropped more than 1% to 4,756.

Analysts said Tokyo's early closure would damage the image of the world's second-largest exchange, which has plans to list its own shares.

The market has been hit by a number of setbacks recently, including an error which stopped trade for nearly a day last year.

"The recent spike in orders is extraordinary," said Taizo Nishimuro, the head of the stock exchange.

The shock share slump also hit the yen, which dropped to a low for the day of 115.88 yen to the dollar, before recovering to around 115.60.

The sell-off comes at a time when Japan's economy has been showing signs of tentative recovery in recent months.

'Selling pressure'

Until the investigation on Livedoor and the fate of the company becomes clear, selling pressure on the overall Tokyo stock market will likely stay Tsuyoshi Nomaguchi, Daiwa Securities

Prosecutors raided the Tokyo offices of Livedoor on Monday, following allegations the company had violated Japanese securities laws.

Bosses at Livedoor denied the company broke market rules by giving misleading information to shareholders, but shares in the company dived on Tuesday, dragging the overall index lower.

One of Japan's best known internet companies, Livedoor has grown rapidly through a series of takeovers and stock splits into a group with a value of about 730bn yen ($6.3bn; £3.6bn) before the scandal erupted.

Its boss, outspoken entrepreneur Takafumi Horie, is a well-known personality in Japan. The 33-year-old shot to fame following separate failed attempts to buy a TV company and a baseball team.

"Until the investigation on Livedoor and the fate of the company becomes clear, selling pressure on the overall Tokyo stock market will likely stay," said Tsuyoshi Nomaguchi, a strategist at Daiwa Securities.

First the 11011on the Dow , now this .

Remember a few days before 9:11

WHOA....

I am not that familiar with stock market ventures...but I am going to say...whoe...too!! This may be one sign of what lies ahead....and this is nothing compared to what is to come! Oh my, may I keep my eyes lifted unto HIM, and to pray peace for everyone as the trials keep on coming, amen, in Jesus name I pray...YSIC hannah fievel

I don't know what this means. But I do know that the vast majority of retirement programs in the USA are based in the Stock Market!
Time to learn what Proverbs 3:5-6 mean, "Trust in the Lord with all your heart and do not lean on your own understanding. In all your ways acknowledge Him, and He will make your paths straight."

It just shows how one company can bring down a stock market. It is so fragile and I believe its just a drop in the ocean of what will happen in the future.

A man who was an executive with a security firm who helped LIVEDOOR, the internet business that caused Japan's panic selling, has apparently killed himself.

http://money.cnn.com/2006/01/19/news/inter...dex.htm?cnn=yes

Japan's turmoil could hit U.S. investors
By John Waggoner, USA TODAY
Although Japan's stock market recovered slightly early Thursday, its sudden problems this week could pose more risk to your investments than you might think.
Wednesday's big sell-off in Japan's Nikkei average comes just as U.S. investors have been putting much more money abroad — and into Japan. Investors poured an estimated $135 billion into world stock funds last year, vs. $52 billion in funds that invest only in U.S. stocks. It was the first year that more new money had gone into world funds than into U.S. funds, says Lipper, which tracks the funds

See rest of article on link below:
http://www.usatoday.com/money/markets/worl...unds-usat_x.htm

My assets are in Heavenly Places, I have none here!

you know the old saying....... can't take it with you.......

My mother grew up during the great depression. She never wasted anything! And she did not trust stock markets. Very wise and frugal, was her key to sucessful living, sprinkled with God's Grace and His Word! I still remember her recycling even before it became popular. She gardened and canned and said we would never be hungry, because God will provide all our needs. I need some of her faith right now. She knew God's Grace and that He will protect His children in what is coming. Give Him Praise! Doesn't He feed the littlest birds? How much more He gives to His Children! We need not fear what is coming, just hold on to the Blessed Hope He gives to us.

Your mother was very wise indeed! You are blessed to call her your mother.
I am going to hold on to the Blessed Hope He gives us. AMEN!!

Thanks for sharing this. What a great comfort our Lord gives us-through all things.

Hummm...I bet they didn't declare martial law and implanted micro chips under skin so that no one can buy or sell without the mark of the beast during the Great Depression eitheir....

flying squirel,

They did declare martial law during the great depression. Remember people were scrambling to get their money! And they found out, it was all gone. Only a few had money after the dust settled.

Just think......people were a lot more kinder then than now.....I remember the gas crisis in the seventies.....people were not nice. Now over 40 years later.....with road rage and all....going to get pretty ugly. Buckele up....it going to be a rough ride. God Bless you all. marie

Why are people so angry these days. I do see a lot of road rage. Everyone is in such a hurry. People that don't have God in their lives must be angry at everything these days. It sure is a me first society isn't it. I don't fit in here,but yet I am here. I guess I better not get angry because they get angry. Know what I mean. I have found myself getting angry because people seem so angry lately.

I am going to remember to treat people like I want to be treated.
Yes it is a bumpy ride already. Let us see if we christians can smooth the way.
I seem to make it more bumpy in the eyes of the unbelievers. They think I am a nut, but I say some nuts are good for you

And you know who benefits the most from nuts? Squirrels!

Some say its the stress of living in the modern world, the future seems so bleak....my theory is they are empty without Jesus in their lives.