Asian stock slide resumes after record US point plunge (Nikkei)

Nikkei index drops 4.5% at opening as stronger yen fans flames

Nikkei staff writers

TOKYO — The Tokyo stock market opened on Tuesday with a 4.5% drop in the Nikkei Stock Average, following sharp declines overnight in the U.S. and Europe.

In Tuesday’s early Tokyo trading, the Nikkei index was down more than 1,000 points, with a stronger yen also hurting investor sentiment.

The U.S. dollar was trading in the lower 109 yen zone after tumbling overnight in New York in reaction to the stock rout. Automotive shares are being hit hard on fears that profits could shrink. The price of Toyota Motor‘s American Depositary Receipts fell more than 3% on Monday in the U.S.

Market watchers are looking for the floor. Yoshihiro Ito, chief strategist at Okasan Online Securities, said the high of 21,489 during trading back on Oct. 20 “would be one benchmark that investors will be looking out for.”

South Korean and Australian shares also opened lower — a 2% drop for the former and 3% fall for the latter.