Nikkei Drops on Murakami Fallout; Some of Financier's Stocks Do Manage to Post Gains; Limited Effect Is Expected
TOKYO -- Japanese stocks pulled back yesterday, as uncertainty over the downfall of corporate financier Yoshiaki Murakami and declines in U.S. stocks from Friday prompted profit-taking in pricey blue-chip shares such as Toyota Motor, Canon and Mitsubishi UFJ Financial.</br></br>But many of the stocks in Mr. Murakami's fund rose, after falling sharply on Friday on fears the fund might sell off its shares.</br></br>The Nikkei Stock Average dropped 121 points, or 0.8%, to 15668.31 following a 285.57-point rally on Friday.</br></br>Most investors said the effect likely would be limited on the overall Tokyo stock market from the Murakami scandal. But some also said they want to see foreign investors' reactions to the news. Mr. Murakami, who leads the so-called Murakami Fund, admitted yesterday that he had violated the country's insider-trading laws, and would step away from his own fund and investments.</br></br>Yesterday, the home for many of the Murakami stocks of start-up companies, the TSE Mothers market, saw its index rise 3.4% to 1393.86, but it is still down about 50% from its year high of 2799.06 in January. Among the stocks in which the Murakami fund holds a major stake, Matsuzakaya, Sumitomo Warehouse, GMO Internet and New Japan Radio all rose.