Tokyo stocks close lower
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TOKYO, Nov 28 AFP
November 28 2012, 6:07PM
Tokyo stocks have lost 1.22 per cent hit by worries over the lack of progress in resolving a US budgetary impasse that threatens to send the world's biggest economy into recession.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange shed 114.95 points to 9,308.35 on Wednesday while the broader Topix index of all first-section issues sank 1.31 per cent, or 10.21 points, to 771.39.
Investors locked in profits from recent gains caused by the yen's weakening trend, usually a boost for Japanese shares, as it reversed course on worries over the US fiscal cliff.
The package of spending cuts and tax hikes -- scheduled to come into effect on January 1 unless a deeply divided US Congress strikes a new budget deal -- threatens to drag the world's biggest economy into recession.
"The difficulties with solving the US 'fiscal cliff' are coming to a head again and may present a good selling opportunity for investors," Kenichi Hirano, market analyst at Tachibana Securities, told Dow Jones Newswires.
US stocks fell Tuesday as US worries overshadowed encouraging economic data, while investors shrugged off an agreement on Greece's new batch of bailout cash.
The Dow Jones Industrial Average shed 0.69 per cent to end at 12,878.13.
Also Tuesday, the OECD in its latest economic outlook warned that global growth is set for a sharp slowdown next year, with the eurozone debt crisis remaining the "greatest threat" to the world economy.
In Tokyo trade, Fujitsu fell 2.62 per cent to 297 yen as the leading Nikkei business daily reported the IT giant will pump Y100 billion ($A1.17 billion)into the underfunded pension plan of its British unit Fujitsu Services.
Toshiba shares declined 4.13 per cent to Y278, Canon was down 3.06 per cent at Y2,817 and Honda Motor off 2.05 per cent at Y2,672.
On currency markets, the euro bought $US1.2920 and Y105.71, weakening from $US1.2938 and Y106.30 yen in New York late Tuesday.
The US dollar was at Y81.80 against Y82.16.