Tokyo stocks fall as accounting fraud hits Kanebo

In Tokyo, the Nikkei 225 average fell for the third straight day on Wednesday and the Topix index was down as well as lower oil prices and less concern about interest rates in the US had little influence over Asian markets.

The Nikkei was down 0.3 percent, ending at 11,637.52. The Topix was also down by 0.3 percent to settle at 1,176.39.

The major reason for the fall in the Tokyo markets was a steep decline in Kanebo shares. Kanebo, a household goods company, admitted that it had discovered accounting fraud that over a five-year period totaled ¥150 billion.

Reports said that the firm’s former managers had overstated earnings in one of the largest known accounting frauds in a non-financial company.

Kanebo’s stock fell 13.4 percent on Wednesday, a four-month low, on investor fears that the company might be forced to drop its listing on the exchange.

Oil stocks also fell Wednesday in Tokyo. In other Asian markets, Shanghai saw a 2.4 percent rise and Hong Kong achieved a three-week high with the Hang Seng index up 1 percent.

In Manila, however, the composite index fell 0.6 percent on fears that a new tax bill will generate less income than expected.

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