Nikkei closes at fresh 5-month low, yen's rise thwarts exporters

20:19, May 24, 2010      

Email | Print | Subscribe | Comments | Forum 

Japan's Nikkei stock index extended losses Monday as investors remained cautious about picking up riskier assets amid ongoing concerns about the eurozone's fiscal health and the yen's appreciation dissuaded buying of export- related issues.

The 225-issue Nikkei Stock Average edged down to a fresh five- month closing low, losing 26.14 points, or 0.27 percent, from Friday to 9,758.40.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 0.32 point, or 0.04 percent, to 880.01.

Brokers said that while Tokyo stocks were, for the majority of both sessions, trading in negative territory, earlier losses were trimmed as investor sentiment was lifted by a firm performance of other Asian markets, particularly the Shanghai Stock Exchange, which gained more than 3 percent.

"The eurozone problems haven't been cleaned up yet and even though the global economy is definitely showing more signs of recovery than it did six months ago, worry continues that the eurozone's woes will put a brake on this growth," said one Tokyo- based market strategist.

"As Chinese stocks rose, stocks in Japan pared losses into the afternoon, but there is still wariness in the market about a stronger yen," said another market analyst.

Market players also pointed towards an economic "double edged sword" as European countries' efforts to reign-in spending to address national debt may cause the global economy to stagnate and as the credibility of the euro continues to decline the yen is always first choice as a currency safe haven, pushing up its value and hurting Japanese firms reliant on overseas profits.

Germany's move to impose a ban on naked short-selling in financial institutions continues to add to a host of factors contributing to uncertainty in the eurozone, analysts added.

The euro traded at around the 112 yen line before recovering some of its lost ground to trade in the upper 112 yen zone on Monday.

As the Shanghai Composite Index advanced as much as 3.7 percent, China-related issues rose with construction machinery maker Komatsu Ltd. climbing 2.2 percent to 1,671 yen and industrial farm equipment maker Kubota Corp. advancing nearly 1 percent to 720 yen.

Meanwhile, Sumitomo Heavy Industries Ltd. rose 1.6 percent to 517 yen.

Despite the yen falling back against the dollar in late trade and the euro attempting to make a come back, the single European currency still ended down 0.3 percent against the yen and thus exporters, particularly those with a heavy presence in Europe, lost ground.

Canon Inc., the world's largest maker of digital cameras, shed 0.4 percent to 3,710 yen and Advantest Corp., maker of chip testers, fell 1.1 per cent to 2,045 yen.

Kyocera Corp. closed at 8,060 yen having lost half a percent.

Japanese shipping lines advanced however following the Baltic Dry Index of shipping rates for commodities' recent climb and Nomura lifted its rating on Japan's three top firms to "buy" from "neutral."

Subsequently, Kawasaki Kisen K.K. gained 3.9 percent to 343 yen, while Mitsui O.S.K. Lines Ltd. added 2.6 percent to 624 yen. Nippon Yusen K.K., Japan's largest shipping line by sales, rose 0. 9 percent to 327 yen.

It was also a good day for Japan's megabanks, with Mizuho Financial Group Inc. climbing 3.1 per cent to 165 yen and Sumitomo Mitsui Financial Group Inc. adding 1.1 per cent to 2,729 yen.

Bucking the upward trend among financials, however, Japan's top- lender Mitsubishi UFJ Financial Group Inc., shed 0.2 per cent to 443 yen.

Some 2.2 billion shares changed hands on the Tokyo exchange's First section, down from Friday's volume of 2.6 billion shares.

Advancing issues outnumbered declining ones by 781 to 758.

Source: Xinhua

(Editor:王寒露)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • A visitor has flying experience in the windmill castle of Jinshitan National Holiday resort in Dalian, northeast China's Liaoning Province, Sept. 27, 2011. The castle is a 23-meter-high building with 21 meters in diameter. The castle uses wind tunnel to make objects floating in the air. It is the first indoor stadium in China, which enables people to have flying experience. (Xinhua/Zhang Chunlei)
  • An Indian artist colours clay idols of Goddess Durga for the upcoming Durga Puja festival in Calcutta, capital of eastern Indian state West Bengal on Sept. 27, 2011. The festival celebrates the homecoming of Mother Goddess Durga and the victory of good over evil, dramatized by the goddess' demolition of the evil buffalo demon, Mahishasura. (Xinhua/Tumpa Mondal)
  • A model presents a creation of new upcoming designer Sergei Grinko at the Milan Fashion Week Women's Wear Spring/Summer 2012 in Milan, northern Italy, Sept. 27, 2011. The Milan fashion week closed on Tuesday. (Xinhua/Wang Qingqin)
  • Yu Guangyao (2nd R), president of Shanghai Shentong Metro Co., Ltd, bows his apology at a press conference on the subway trains collision accident happened Tuesday afternoon, in east China's Shanghai Municipality, Sept. 27, 2011. By 8:30 p.m. (1230 GMT) Tuesday, a total of 271 injured people in the accident have received medical treatment in hospitals, among them 180 have been dispatched. Other 61 injured people are still in hospital, in which 30 are under emergency observations. No critical injuries have been reported. (Xinhua/Chen Fei)
  • Children visit the Confucian temple in Tainan, southeast China's Taiwan, Sept. 27, 2011. A ceremony will be held at the temple to commemorate Confucius (551-479 BC) on Sept. 28, the birthday of the ancient Chinese thinker and educationist and the annual Teacher's Day of Taiwan in honor of him. (Xinhua/Ren Zhenglai)
  • Fourth-grader Ma Lianghai (left) and third-grader Ma Linxiang are engrossed in their work during art class at Zhaojia Elementary School in Dongxiang, Gansu province, on Sept 18. (Photo by Xu Jingxing/China Daily)
Hot Forum Discussion