KEY POINTS:
The Nikkei fell 2.5 per cent yesterday. It hit its lowest point in more than five years before a rally sparked by a report that the US is weighing a US$40 billion proposal to help forestall foreclosures.
The benchmark Nikkei lost 213.71 points to 8,460.98 after earlier falling more than 7 per cent to 8,016.61, its lowest since May 2003.
Figures released yesterday showed that Japan's exports grew only slightly in September from a year earlier as the spreading effects of the global financial crisis took their toll on demand for Japanese goods.
"We now have a situation where investors can't avoid admitting the spread of the global recession," said Kenichi Hirano from Tachibana Securities.
"A strong yen is also a huge blow to Japanese exporters as it will certainly hurt their earnings."
- AGENCIES
