Tokyo stocks fall sharply by break on stronger yen, weaker oil

Tokyo stocks fell sharply by the break on Friday, as a stronger yen dented exporters and another fall in oil prices hammered energy-linked firms.

US crude dropped below $31 a barrel after news that American stockpiles rose to the highest in more than eight decades, reigniting concerns about demand and broader worries about the global economy.

In response, Japanese energy explorer Inpex tumbled 10 percent to 860.5 yen by the break, while JX Holdings was off more than four percent to 441.6 yen.

The benchmark Nikkei 225 index at the Tokyo Stock Exchange fell 2.23 percent, or 360.57 points, to 15,836.23 and the broader Topix index of all first-section shares tumbled 2.14 percent, or 28.02 points, to 1,283.18.

Weak sentiment pushed up the yen, which is a negative for shares of Japanese exporters, as the dollar slipped to 112.86 yen from 113.24 yen Thursday in New York.

"The stronger yen will be a burden on Japanese markets," Hideyuki Ishiguro, a senior strategist at Okasan Securities, told Bloomberg News.

"Investors are concerned at the downside of earnings, especially for exporters, which may weigh down the markets.

"We're not in a place where we can buy. The yen may strengthen further versus the dollar."

The Nikkei also suffered profit-taking after Thursday's 2.28-percent jump.

Toyota, which said on Thursday it was recalling nearly three million vehicles globally due to the possibility that their rear seatbelt could come apart in a crash and cause injuries, fell 3.12 percent to 5,987 yen.

Sony was down 2.53 percent to 2,504 yen, while Nintendo dropped 3.59 percent to 15,945 yen. (AFP)