Nikkei closes at 26-Year Low

The Nikkei index on Monday to its lowest level for 26 years. Above all, the shares of Japanese car companies came in the wake of the ailing U.S. rivals General Motors (GM). Also worried about the fate of banks pushed the stock exchanges in Tokyo. The key index in Tokyo closed the first day of trading last week in the minus 1.21% at 7086 points. The broader Topix lost 1.51% to 710 meters. Already on Friday, the Nikkei to a four-month low closed.

For investors it would be difficult, auto shares to buy, because nobody knows how it go further with GM, said an analyst from Tokai Tokyo Securities. Until now, nothing concrete is known. Investors were waiting eagerly awaiting the outcome of a planned meeting this week between the Auto Task Force, the U.S. Government, General Motors, Chrysler and the United Auto Workers union in Detroit.

The shares of Japanese auto makers, under paragraph weaknesses in consequence of the global economic crisis suffered gave to: The Papers of Toyota, Honda and Nissan fell by up to 2%. “The worries about the financial system have not gone away,” added the analyst added. This would seem to hedge fund money in gold rather than in shares.

After the increase in the Nikkei had opened, he lost much as the Hangseng index in Hong Kong weaken in trading started. Even the stock exchanges in Shanghai and Taiwan were in the minus. The South Korean Kospi index on the other hand, stood on the other hand, around 1.3% in Plus.

“The markets have responded to falling of share prices in Hong Kong responded,” said an analyst of SMBC Friend Securities. “It seems to let the optimism on the occasion of the People’s Congress in China has prevailed, and again after weaker meant as Asia markets also for a weaker Wall Street trading.” Last week, the Chinese Prime Minister Wen Jiabao stated that despite the economic crisis, the People’s Republic of its growth target of 8% to reach.