Tokyo slumps as yen strengthens, Toshiba plunges again

Tokyo slumped Thursday as the yen strengthened against the dollar while Toshiba's stock plunged for the third straight day.

The troubled conglomerate's shares ended another torrid day 17 percent down, following the company's warning of a possible one-time loss of several billion dollars over its US nuclear business.

Its stock has now lost more than 40 percent of their value since Tuesday and has seen virtually all gains for the year erased.

Overall, Japanese stocks saw their biggest drop in more than a month Thursday after a 1.3 percent fall, following a negative lead from Wall Street and the yen climbing more than one percent against the greenback. The Nikkei is now up just 0.7 percent in 2016.

Other major markets were mixed, with Hong Kong edging up and Shanghai drifting marginally lower by the close. Sydney recorded a 0.3 percent rise to end at its highest level of the year.

The Dow had receded Wednesday after nearing the historic 20,000 benchmark with shares of some banks falling more than one percent after the stock prices had won outsized gains in the rally seen since US election day.

Wall Street investors sold equities at the fastest rate since before Donald Trump's surprise election victory in November, paring the post-election rally. The dollar had also risen since the billionaire's win on speculation he will boost public spending.

- Oil ends winning streak -

"A market riding on expectations toward a Trump presidency is coming to a close, and we’re starting to focus on reality," said Mitsushige Akino, an executive officer at Ichiyoshi Investment Management in Tokyo, told Bloomberg News.

"I expect investors to take a more nervous stance toward US economic indicators from here on."

Bill Lynch, director of investment at Hinsdale Associates, added investors were taking stock as the Dow's 20,000 level loomed.

"There is a fair amount of profit-taking when the stocks get closer to that milestone," he said.

Both main oil contracts fell, ending crude's nine-day winning streak, ahead of inventory data from the US Department of Energy later Thursday, with the market expecting a 1.5 million barrel drawdown.

But analysts cautioned that with trading volumes less than half the average, a clearer picture of the market would not emerge until the OPEC output cut deal takes effect in January.

"I don't think we can read a lot into what happens (in the market) until we get a clearer picture of the OPEC deal in the new year," said CMC sales trader Alex Furber.

"Obviously they have got a deal in place, but whether they keep to it is a different matter."

In early European trade, London shed 0.4 percent to 7,057.17 points, one day after striking an all-time closing pinnacle at 7,106.08. Frankfurt declined by nearly 0.6 percent and Paris recoiled 0.5 percent.

- Key figures around 0800 GMT -

Tokyo - Nikkei 225: DOWN 1.3 percent at 19,145.14 (close)  

Hong Kong - Hang Seng: UP 0.2 percent at 21,790.91 (close)     

Shanghai - Composite: DOWN 0.2 percent at 3,096.10 (close)  

Euro/dollar: UP at $1.0452 from $1.0412

Dollar/yen: DOWN at 116.34 yen from 117.20 yen 

Pound/dollar: UP at $1.2256 from $1.2216

Oil - West Texas Intermediate: DOWN 30 cents at $53.76 per barrel

Oil - Brent North Sea: DOWN 5 cents at $56.17 per barrel

New York - Dow: DOWN 0.6 percent at 19,833.68 (close)

London - FTSE 100: DOWN 0.4 percent at 7,057.17 points