TOKYO, Aug. 3 (Xinhua) -- Tokyo stocks closed sharply lower on Friday, with Japan's benchmark Nikkei stock index experiencing the second-largest drop in its history.
The 225-issue Nikkei Stock Average fell below the key level of 36,000 yen to reach a six-month low by ending the day at 35,909.70, down 2,216.63 points or 5.81 percent from Thursday.
It marked the largest drop in over 36 years since a plummet of 3,836 points on Oct. 20, 1987, the day after the Black Monday crash.
Market watchers here noted that the significant decline in the overnight U.S. stock market, coupled with the recent yen appreciation in the forex market, deteriorated investor sentiment, leading to widespread selling.
Concerns were raised after a series of U.S. economic indicators fell short of market expectations, suggesting that the U.S. economy was slowing more than anticipated, weighing on Japanese stocks, according to local analysts.
The fall in U.S. tech stocks also caused selling to spread to semiconductor-related stocks such as Tokyo Electron, further pushing down the Nikkei.
Meanwhile, the broader Topix index also ended significantly lower by finishing 166.09 points, or 6.14 percent, lower at 2,537.60.
On the Prime Market, 98 percent of the stocks declined, with 1,626 issues falling. Only 14 issues rose, and 5 remained unchanged.■
