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Around the World's Markets: Tokyo

Thursday 08 October 1998 18:02 EDT
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JAPAN'S BLUE-CHIP index took its steepest tumble in more than seven years, surrendering Wednesday's 803.97-point gain after the yen's rally threatened profits at exporters. The Nikkei 225 ell 799.55 points, or 5.78 per cent, to 13,026.06.

The yen soared overnight as signs of government action on the economy upped pressure on hedge funds to buy the currency to pay back yen-denominated loans. "A lot of exporters have based their profit forecasts on 130 yen to the dollar - 120 will probably mean more downward revisions,'' one trader said.

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