There was an almost frantic rush to sell at the Tokyo Stock Exchange on Thursday (1 March) after reports that West European and Japanese Foreign Exchange Markets had been closed.
GV & SV Japanese Stock Market and sign
GTV INT Stock market
SV Crowd of brokers and buyers and traders
GV & SV Board boys
GV PAN Stock exchange floor crowded
GV Money bank EXT
SV PAN Employees at work
SCU Bank of clocks
CU & SV Employees on phones (2 shots)
CU Sign "No quotation"
CU Employees on phones (3 shots)
Initials TS/AS/BB/0101 TS/AS/BB/0054
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Background: There was an almost frantic rush to sell at the Tokyo Stock Exchange on Thursday (1 March) after reports that West European and Japanese Foreign Exchange Markets had been closed.
The result of the hectic sellout -- heavy losses. Within 15 minutes of opening, the market lose averaged 35.12 compared with 5,139.95 at the end of trading on Wednesday (28 February)
Within hours of the announcement of the closure of the exchange market in Japan, foreign exchange markets in West Germany, Austria, Belgium, Holland and England also closed for the day.
Late on Friday (2 March), United States President Richard Nixon announced in Washington that despite rumours from Tokyo, the American dollar would not be devalued again.
Japan depends heavily on the dollar to settle most of its foreign trade, and the bulk of her external reserves now total about 19,000-million dollars.
In a few hours of trading in the Tokyo Stock Exchange, millions of dollars were sliced off key stocks. The floor was packed with sellers offering prices that some brokers said were 'frighteningly' low.
SYNOPSIS: Millions of dollars were slashed from the value of shares in a hectic burst of selling on the Tokyo Stock Exchange on Thursday.
As soon as it was announced that the Japanese Exchange Market was closed, the Tokyo stock exchange floor was crowded with brokers trading at what some experts said were 'frightening' prices. Within fifteen minutes of opening, the market lose averaged 35-point-one-two, down from 5,139-point-nine-five a at Wednesday's close.
At the Foreign Exchange, employees spent most of Thursday telling clients that they weren't open for business. Japan's decision to close its money trading doors led to the almost immediate closure of money markets in West Germany, Austria, Holland, Belgium and England.
Monetary officials said that the new monetary crisis in Western Europe would put Japan in a difficult position, as pressure for further appreciation of the Yen was bound to increase.