Tokyo stocks slide on US consumer confidence, stronger yen

Tokyo - Stocks in Tokyo fell Wednesday on a plunge in US consumer confidence and a stronger yen. The benchmark Nikkei 225 Stock Average barely clung to 16,000 after losing more than 400 points before recovering some ground, ending the day 274.66 points, or 1.69 per cent, lower at 16,012.83. The broader Topix index of all first-section issues was also down 27.05 points, or 1.71 per cent, to close at 1,557.55. US consumer confidence in August fell the most since 2005, the private Conference Board said Tuesday, blaming the fall on the crisis surrounding losses from subprime, or high-risk, mortgages that has sent stocks tumbling around the world in recent weeks. The data raised fears among investors that mortgage and housing concerns would spill over into the rest of the economy. Financial stocks were among the biggest decliners in Tokyo on concerns the US crisis would lead to tighter credit markets and lower profits. Exporters were also hit by the data from the United States, which is Japan's largest export market, and the rising yen, which makes their goods more expensive overseas. On currency markets at midday (0300 GMT), the dollar was quoted at 114.05-10 yen, down from Tuesday's 5 pm quote of 115.50-52 yen. The euro was quoted at 1.3575-77 dollars, down from Tuesday's 5 pm quote of 1.3639-42 dollars.