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Tokyo stocks down 2.30% by break

Tokyo stocks tumbled 2.30 per cent on Wednesday morning as they played catch-up to losses on Wall Street and as the yen rose against the dollar.

TOKYO: Tokyo stocks tumbled 2.30 per cent on Wednesday morning as they played catch-up to losses on Wall Street and as the yen rose against the dollar.

The Nikkei 225 index slipped 332.39 points to 14,125.12 by the break while the Topix index of all first-section issues was down 2.17 per cent, or 25.63 points, at 1,156.85.

Tokyo markets were closed on Monday and Tuesday for national holidays.

The dollar was at 101.57 yen in Wednesday midday trade, down from 101.73 yen in New York on Tuesday afternoon and 102.36 yen in Tokyo on Friday before the Japanese holidays.

A strong yen is negative for Japanese exporters as it makes them less competitive abroad and erodes repatriated profits.

US stocks retreated on Tuesday as a sell-off of Twitter shares revived worries about the tech sector and as disappointing earnings from insurer AIG hit financial stocks.

The Dow Jones Industrial Average fell 0.78 per cent to 16,401.02.

Investors were also jittery over the Ukraine crisis.

Russia rejected a new peace initiative for Ukraine on Tuesday as fears of open war mounted in the ex-Soviet republic, whose troops are waging a deadly offensive against pro-Moscow rebels.

In Tokyo stocks trade, SoftBank was down 3.76 per cent to 7,525 yen at the break after rising early in the day on a report in the Nikkei economic daily that the mobile carrier is expected to report a record net profit for the year ended in March, thanks largely to its aggressive buying spree.

SoftBank is to release annual results later in the day.

Nintendo, which was also to announce earnings results after the market closes on Wednesday, fell 2.96 per cent to 10,645 yen.

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