Nikkei falls 0.45% as market awaits fresh cues, yen weighs

19:04, June 28, 2010      

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Tokyo stocks declined Monday with the Nikkei average slipping to a fresh two-week low as the yen's appreciation hit export-related issues and dampened investor sentiment amid a lack of new trading cues.

The 225-issue Nikkei Stock Average dropped 43.54 points, or 0. 45 percent, from Friday to 9,693.94, the lowest closing level since June 10, whilst the broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 6.50 points, or 0.75 percent, to 860.80.

Analysts said that the widely anticipated Group of 20 summit held over the weekend in Toronto, Canada bore little fruit and provided markets with little reassurance for the recovery of the global economy and some brokers commented that the lofty targets for major economies to reduce their deficits in the next three years were untenable and planned austerity measures, particularly in the embattled euro zone, could be destabilizing in the short to mid term.

"The market lacked both fresh cues and a sense of direction. The G-20 meeting is over but nothing has changed," said one analysts who added: "Uncertainty remains about the global economy, as does a strong sense of caution about the fiscal problems in Europe."

One local broker said that plans to cut nations' deficits in half could effectively slow future economic growth and statements outlining financial institutions' need to raise capital " significantly" as a safety net to avoid a repeat of the global meltdown, sparked some concern about share issuance and dilution.

However, talk in Toronto of "growth-friendly" fiscal consolidation plans that would suit the individual needs of particular countries, resonated positively according to local market players.


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(Editor:黄蓓蓓)

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