Tokyo, Mar 30: Japanese share prices fell 2.8 per cent on late futures-led selling on Monday as enthusiasm over a planned government economic package dwindled, brokers said. ``Sentiment failed to improve in the morning session, despite the report of an extension of income tax cuts,'' said a Dai-Ichi Securities Co broker.On Sunday, former Prime minister Kiichi Miyazawa said the government might implement an income tax cut worth up to $30 billion to stimulate domestic demand. The comment boosted the Nikkei index more than 200 points in early trading but the market lost steam as the yen tumbled against the dollar on the announcement of a slump in industrial output for February. The Nikkei Stock Average of 225 selected issues fell 476.22 points to close at 16,263.04, while the topix index of all issues on the first section of the tokyo stock exchange was down 17.28 points at 1,241.27.
Turnover on the major board totalled an estimated 360 million shares, compared with 300 million shares traded in the previoussession. Many investors stuck to the sidelines as the government reportedly prepared to pump in postal savings funds on Tuesday to prop up the Nikkie index above the year-before level of 18,000, brokers said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
