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Friday, December 26, 1997 Published at 11:31 GMT

Business

Japanese brokerage 'has hidden losses'
image: [ Investors are not yet certain that Japan's string of collapses are over ]

Investors are not yet certain that Japan's string of collapses are over

The Tokyo Stock Exchange has closed after a bad day spurred by a Ministry of Finance warning of further hidden corporate losses.

The Nikkei 225-issue closed below the psychologically important 15,000 point level after falling 497.5 points.

The 3.5% drop on Friday meant the Nikkei average closed the week at 14,802.6 after rising on Christmas Day.

The Japanese Ministry of Finance has so far refused to name the brokerage it says has built up undisclosed losses.

But the mere suggestion of more financial woe provoked the marked fall and a slight drop in the US dollar against the yen.

Many had hoped that Japan's string of bankruptcies had ended after its formerly fourth-largest brokerage, Yamaichi Securities Co, collapsed a month ago.

A number of the bankruptcies, including Yamaichi, came at the weekends, so the timing of the ministry's announcement worried investors and traders further.

The Tokyo Stock Price Index of all issues listed on the first section of the Tokyo Stock Exchange fell 18.64 points on Friday after gaining 27.64 the previous day.

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	Relevant Stories 25 Dec 97 \| Business Japanese stocks up sharply 23 Dec 97 \| World Japanese brokerage house files for bankruptcy 22 Dec 97 \| Business Nikkei dives below key mark 03 Dec 97 \| Special Report Japan: Banking crisis 26 Nov 97 \| Business Japan says 'no more bankruptcies' 26 Nov 97 \| Despatches Another Japanese bank collapses



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