Tokyo stocks end 2-month low on strong yen, growth strategy

Tokyo stocks continued their slide on Thursday, sending a key index to the lowest closing level in two months following an overnight plunge on Wall Street and on the back of a stronger Yen, as well as the government's unimpressive growth strategy unveiled on the previous day. The 225-issue Nikkei Stock Average on the Tokyo Stock Exchange (TSE) lost 110.85 points, or 0.85 percent, from Wednesday to 12,904.02, finishing below the psychologically important 13,000 level for the first time since April 5. The broader Tokyo Stock Price Index, which includes all shares on the TSE's first section, was down 19.26 points, or 1.77 percent, to 1,070.77, with all 33 subindexes ending in negative territory. On Wednesday, the Dow Jones industrial average in the US fell below 15,000 for the first time in about a month. Japanese Prime Minister Shinzo Abe outlined the government's long-term growth strategy on Wednesday, which aims for 3 percent nominal growth per year and 2 percent real growth over the next decade. This would raise Japan's per capita gross national income by JPY 1.5 million (USD 15,000) in 10 years. The government also intends to set up special economic zones to raise private investment and attract foreign capital and human resources. But the investors were disappointed with the growth strategy, saying it was within the scope of expectations. In the currency market, at 3:55 p.m. (0655 GMT), the US dollar traded at JPY 99.16-20 against JPY 99.01-11 in New York and JPY 99.72-74 in Tokyo at 5 p. m. Wednesday.