Japan stocks head south on global economic worries

TOKYO—Japanese shares tumbled Thursday as ongoing concerns about the domestic and global economic outlook took a heavy toll on investor sentiment.

The benchmark Nikkei 225 index shed 131.93 points, or 1.04 percent, to 12,557.66 -- its lowest close since March 24. The broader Topix index lost 1.56 percent to 1,201.41.

Big losers of the day included trading houses and marine transport issues, which are being weighed down by spreading slowdowns in developing countries, said Naoki Fujiwara, a fund manager at Shinkin Asset Management in Tokyo.

"The situation (for Japanese stocks) looks difficult," Fujiwara said.

Major trading house Mitsui & Co. fell 5.84 percent to 1,563 yen, and Mitsuibishi Corp. was off 5.19 percent at 2,555 yen. Cargo shipper Mitsui O.S.K. Lines nosedived 7.31 percent to 1,116 yen after the Baltic Dry Index, a key measure of rates on 40 shipping routes, fell sharply.

Japanese glass makers were also hammered after Corning Inc. cut its third-quarter sales and profit forecasts to reflect slower shipments of glass used in flat-screen televisions and computers.

The news battered shares of the world's largest maker of glass for liquid-crystal-display televisions and PCs on Wall Street overnight, with the pessimism spreading to Japan Thursday.

Asahi Glass dropped 3.35 percent to 1,068 yen, and Nippon Sheet Glass Co. retreated 1.38 percent to 642 yen.

Among gainers, Honda Motor Co. jumped 3.12 percent to 3,640 yen after posting less severe declines in U.S. auto sales in August than U.S. car makers or rival Toyota Motor Corp.

Fast Retailing, operator of casual clothing chain Uniqlo, gained 4.85 percent to 11,880 yen. The company said Wednesay it plans to open new stores in India and Russia.

In currencies, the dollar stood at 108.23 yen, down slightly from 108.30 yen late Wednesday. The euro rose to $1.4531 from $1.4516.