STOCK MARKET WATCH -- Monday, 16 January 2012

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41. Nikkei hits 4-week closing low on Europe worries

http://uk.reuters.com/article/2012/01/16/markets-japan-stocks-idUKL1E8CG13220120116

TOKYO, Jan 16 (Reuters) - Japan's Nikkei average fell
to a one-month closing low on Monday after downgrades of nine
European countries, including a cut in France's triple-A rating,
escalated fears over the region's ability to end its debt
crisis.

Adding to market unease was an impasse in negotiations
between Greece and private creditors on a debt swap deal,
raising the risk of a Greek default in March when massive bond
payments are due.

"Now markets are worrying about a possible downgrade of
European banks and the region's bailout fund, which would make
it even harder to raise capital," said Fumiyuki Nakanishi,
general manager of investment and research at SMBC Friend
Securities.

"It's as if Europe is in a dark spiral where people are
discussing the worst case scenario for the euro zone," he said.