Japan stocks fall to lowest in 6 months

TOKYO - Japanese stocks dropped to their lowest level in six months Wednesday amid anxiety over declines on Wall Street and the arrest this week of a high profile fund manager accused of insider trading. The benchmark Nikkei 225 index shed 288.85 points, or 1.88 percent, to finish at 15,096.01 points on the Tokyo Stock Exchange — the index's lowest close since Nov. 30. The index has fallen 4.4 percent over the last three days. The overnight drop in U.S. stocks and worries that possible hikes in U.S. interest rates might slow global growth dampened sentiment in Tokyo, where investors were still jittery over Monday's arrest of Yoshiaki Murakami, head of investment fund MAC Asset Management. "We have apprehension over the U.S. economy and the arrest of Mr. Murakami combining to make fund managers wary about when to call a bottom to this fall," said Hitoshi Yamamoto president of Commerz International Capital Management. Auto, steel, banks and metal issues led the declines amid net sell orders from foreign brokerages. Decliners included Toyota Motor Corp., which fell 1.33 percent to 5,920 yen ($52.39) and Canon Inc., which posted a 1.15 percent to 7,760 yen ($68.67). Nippon Steel Corp. declined 4.52 percent to 401 yen ($3.55). Mitsui Mining and Smelting Co. plunged 5.01 percent to 663 yen ($5.87). Machinery makers also fell, with Komatsu Ltd. dropping 6.50 percent to 2,015 yen ($17.83). Among banks, Sumitomo Mitsui Financial Group Inc. fell 1.75 percent to 1.12 million yen ($9,911.50). On Wall Street Tuesday, stocks dropped for a second straight session in the wake of comments by U.S. Federal Reserve Chairman Ben Bernanke that the central bank will remain vigilant in fighting inflation. The Dow Jones industrial average fell 46.58, or 0.42 percent, to 11,002.14 — its lowest close since March 9. In Tokyo, the broader Topix index, which includes all shares on the market's first section, also lost ground, falling 33.76 points, or 2.15 percent, to 1,533.54 points. It was the Topix's lowest close since Nov. 25. In currencies, the dollar was trading at 113.30 yen on the Tokyo foreign exchange market at 3 p.m. Wednesday, up 0.16 yen from late Tuesday in New York. The euro fell to $1.2816 from $1.2834. The yield on the 10-year Japanese government bond fell to 1.8750 percent from Tuesday's close of 1.9200 percent. Its price rose 0.38 to 100.21 points.-AP