"The market may fall into a downtrend if the Nikkei can't rebound to about 9,800 yen"
- Masaru Hamasaki, chief strategist at Toyota Asset Management Co.
Japanese stocks erased Friday's gains Monday on concern the European debt crisis is escalating.
The Nikkei 225 fell 1.74%, or 167.35 points, to 9,470.64, while the broader Topix retreated 1.43%, or 11.65, to 803.83.
"A rescue for Spain would be huge if it actually happens, and it could make the crisis worse than last year," said Masaru Hamasaki, chief strategist at Toyota Asset Management Co. in Tokyo.
"The market may fall into a downtrend if the Nikkei can't rebound to about 9,800 yen."
"Concern is mounting about the Spanish bond sales this week, with yields rising and credit-default swaps extending a record," said Toshiyuki Kanayama, a market analyst at Tokyo-based Monex Inc.
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