Tokyo stocks end 2-month low on unimpressive growth strategy

Tokyo stocks plunged on Wednesday, sending a key index to the lowest closing level in two months, as the government's growth strategy unveiled by Prime Minister Shinzo Abe failed to impress investors. The loss marked the third-biggest this year. The 225-issue Nikkei Stock Average on the Tokyo Stock Exchange (TSE) lost 518.89 points, or 3.83 percent, from Tuesday to 13,014.87, the lowest closing since April 5. The broader Tokyo Stock Price Index, which includes all shares on the TSE's first section, was down 35.44 points, or 3.15 percent, to 1,090.03, with 32 of 33 subindexes closing in negative territory. The yen's strength against the dollar and the euro also sent carmakers and other blue-chip exporters down. Earlier in the day, Abe outlined the government's long-term growth strategy, 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. The blueprint also aimed at promotion of free trade agreements and corporate involvement in agriculture. The Cabinet is set to endorse the growth strategy on June 14. In the currency markets, at 5:30 p.m. (0830 GMT), the US dollar traded at JPY 99.79-82 versus JPY 100.00-10 in New York and JPY 100.28-29 in Tokyo at 5 p.m. Tuesday.