Tokyo markets sharply lower

The Tokyo equities markets were substantially lower on Wednesday as manufacturers felt the impact of rising prices for raw materials and as investors continued to worry about US interest rates. The Nikkei 225 was down 1.9 percent to 14,886.11, while the Topix index declined by 1.4 percent to 1,527.51.

Tiremaker Bridgestone dropped 4.3 percent to ¥2,140 after it said that rising raw materials prices were forcing it to cut its 2006-2007 profits forecast. Yokohama Rubber fell by 2.8 percent to ¥488, while Sumitomo Rubber declined by 4.4 percent to ¥1,208.

Chemical stocks were also hit by higher raw materials costs as the price of naphtha hit record highs in Asia. Nissan Chemical Industries was down 3.8 percent to ¥1,379, while Mitsui Chemicals declined by 6.8 percent to ¥704.

The export-focused automobile manufacturing sector saw losses as concerns continued about the state of the US economy. Toyota was down 1.9 percent to ¥5,700. Nissan dropped 2.3 percent to ¥1,183 after issuing warnings of poor domestic sales and rising materials costs, while Honda fell 2.5 percent to ¥3.530.

The securities sector was down 2.7 percent as a whole. Nomura declined by 3.1 percent to ¥2,035, while Nikko Cordial dropped 3.5 percent to ¥1,436 and Kabu.com fell 6.3 percent to ¥207,000.

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