6 November 2003, 09:37  Japan stocks drop 2.6% ahead oа general election

TOKYO, Nov 6 - Japanese stocks fell 2.6 percent on Thursday, the biggest one-day percentage fall in two weeks, as investors, turning wary ahead of a general election at the weekend, sold Mizuho Financial Group <8411.T> and other banks. Construction companies such as Taisei Corp <1801.T> were also shunned after having enjoyed heady gains in the past couple of months. Tetsuya Ishijima, senior investment strategist at Okasan Securities Co Ltd, said falls in bank shares, which have been the engine for recent rallies, weighed on the overall market, but he added that investors were also looking ahead to Japan's Lower House poll on November 9. "Investors also want to wait for the election outcome," he said. The Nikkei average <.N225> fell 2.63 percent to 10,552.30, adding to a 0.10 percent fall in the previous session. The broader TOPIX index <.TOPX> lost 2.61 percent to 1,035.57. Mizuho, the world's largest bank by assets, fell 6.77 percent to 248,000 yen. The stock has come off its year high of 329,000 marked on October 14, but is still up about 70 percent since the beginning of September. Sumitomo Mitsui Financial Group <8316.T> fell 6.0 percent to 533,000. Taisei also came under profit-taking pressure and fell 6.61 percent to 353 yen.//

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