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Nikkei drops to 1-month low on Turkish economic crisis

TOKYO (Kyodo) -- The Nikkei index dropped to a one-month low Monday morning in Tokyo as concerns grew that Turkey's economic crisis could eventually hurt the world economy.

The 225-issue Nikkei Stock Average shed 355.85 points, or 1.60 percent, from Friday to 21,942.23. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 29.53 points, or 1.72 percent, at 1,690.63.

Decliners were led by marine transportation, nonferrous metal and machinery issues.

The Nikkei lost more than 380 points before the midday break, tracking last week's fall in European and U.S. stocks on the Turkish lira's plunge and extending losses in tandem with the yen's rise against the dollar, brokers said.

Given European banks' exposure to the Turkish market, "news about Turkey's crises prompted a fall in the region's financial stocks" Friday, and concerns also grew in the Tokyo stock market, said Akira Tanoue, senior investment strategist of the investment research and investor services department at Nomura Securities Co.

On the First Section, declining issues outnumbered advancers 1,855 to 200, while 42 ended the morning unchanged.

Among bank stocks, Mitsubishi UFJ Financial Group was down 18.00 yen, or 2.7 percent, at 651.50 yen. Sumitomo Mitsui Financial Group shed 93 yen, or 2.1 percent, to 4,280 yen and Mizuho Financial Group fell 3.10 yen, or 1.6 percent, to 191.90 yen.

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