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TOKYO, JAPAN - Japanese share prices fell sharply in early trade Wednesday, with the benchmark index down more than two percent following a plunge on Wall Street on new fears of a US recession.
Wall Street tumbled overnight after a shockingly bad survey on non-manufacturing business, which accounts for two-thirds of the world's largest economy.
The Tokyo Stock Exchange's Nikkei-225 index was down 511.70 points at 13,233.80 about half an hour before the end of the morning session.
The broader Topix index of all first-section shares was down even more sharply, falling 46.52 points or 3.43 percent at 1,308.96.
The US business survey by the Institute for Supply Management (ISM) reversed a recent rebound on financial markets, which have been wracked by a credit crunch caused by rising mortgage defaults by high-risk US customers.
"But it is too early to say that the rebound trend has changed," said Mitsushige Akino, chief fund manager at Ichiyoshi Management.
"You need more time to assess the impact of the ISM index and jobs report on the actual US economy," Akino said.
The losses were across the board, with shares in auto giant Toyota Motor Corp. down more than two percent even though it reported record third-quarter profits on Tuesday.
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