"Investors have been looking at the situation in the U.S. and Europe optimistically and have been buying shares, but that energy is exhausting itself"
- Koji Toda, chief fund manager at Resona Bank Ltd.
Japanese stocks tumbled on Friday after reports showed European manufacturing and services shrank more than expected. The Nikkei 225 retreated 1.14%, or 115.61, to 10,011.47. The broader Topix fell 1.11%, or 9.54, to 852.53.
"Investors have been looking at the situation in the U.S. and Europe optimistically and have been buying shares, but that energy is exhausting itself," said Koji Toda, chief fund manager at Resona Bank Ltd. in Tokyo.
"If you look at the situation rationally, there's a lot of risk still out there."
"Considering how much Japan has risen, it wouldn't be a surprise if we saw some correction given the slowing in the yen's declines and slowdowns in Europe and China," said Naoteru Teraoka, general manager at Tokyo-based Chuo Mitsui Asset Management Co.
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