The massive stock market correction onWall Street will force a decline in Japanese share prices but a
decline of similar proportions will not occur due to economic
factors, said Setsuya Tabuchi, chairman of the board of Nomura
Securities Co Ltd.
    "There are less inflation worries in Japan and less
possibility of interest rate rises," Tabuchi told reporters.
    He also said Japan had a higher savings rate which provided
more funds for investment than was the case in other countries.
    "If interest rates rise worldwide, Japan may raise the
discount rate, but the possibility of a Japanese rate increase
is smaller than in the U.S., Britain and West Germany," Tabuchi
said.
    However, he noted that the Nikkei Dow stock index of the
Tokyo stock exchange and the Dow Jones Industrial average have
moved in tandem in the past four years.
    The Dow fell 508 points to 1738 on Monday, its largest
percentage decline since the First World War.
    The Tokyo index fell 620.18 to 25,746.56 on Monday, the
sixth largest decline on record.
 Reuter
