(Updates to midmorning)
TOKYO Oct 10 The Nikkei average tumbled more
than 11 percent on Friday, poised for its biggest one-day drop
since the 1987 stock market crash, on fears of a global recession
despite moves by global authorities to thaw frozen credit
The stock sell-off led the Osaka Stock Exchange to trigger a
circuit-breaker and briefly halt trade in the Nikkei futures.
"No one is buying. Fundamentals don't matter any more and
there's no explanation for such a plunge," said Yoshinori Nagano,
chief strategist at Daiwa Asset Management.
"Fears about the U.S. financial system have been rekindled.
The U.S. government is still debating whether it would inject
money into financial institutions. It needs to act now even if
that would be beyond the current law."
As of 0100 GMT, the benchmark Nikkei .N225 had recovered a
little to be down 9.6 percent or 874.45 points at 8,283.04.
If the fall is sustained until the end of Friday, it will
surpass a 9.4 percent fall in the Nikkei earlier this week, which
is the biggest fall since a 14.9 percent one-day slide during the
1987 stock market crash.
The broader Topix .TOPX lost 7 percent to 841.98.
The Dow Jones industrial average .DJI dropped 7.3 percent
to 8,579.19 on Thursday, with bank and insurance stocks hammered
again, as the previous day's coordinated global interest-rate
cuts and myriad other official measures to unfreeze money markets
did little to boost confidence in the financial sector.
(Reporting by Aiko Hayashi; Editing by Rodney Joyce)