ID :
151057
Wed, 11/24/2010 - 11:37
Auther :
Shortlink :
http://m.oananews.org//node/151057
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Tokyo Stocks Slide in Morning on Korean Peninsula Clash
Tokyo, Nov. 24 (Jiji Press)--Stocks retreated after a four-day rally on the Tokyo Stock Exchange Wednesday morning amid heightened tensions on the Korean Peninsula, but they displayed resilience toward the morning close.
At the morning close, the 225-issue Nikkei average stood down 75.76 points, or 0.75 pct, at 10,039.43. On Monday, the key market rose 92.80 points to mark the fourth straight day of gains.
The Tokyo market was closed Tuesday for a national holiday.
The TOPIX index of all first-section issues was 7.04 points, or 0.80 pct, lower at 868.44, after gaining 5.96 points the previous trading day.
The Nikkei shed over 200 points to a level just a hair above 9,900 in early trading, with many export-oriented issues coming under
profit-taking pressure following North Korea's deadly attack Tuesday on a South Korean island near a disputed maritime border in the Yellow Sea. South Korea returned fire.
Sharp falls in overseas equities in overnight trading, which
stemmed from the clash on the Korean Peninsula as well as from lingering European credit woes, also prompted selling of Tokyo stocks, brokers said.
After the initial wave of sales ran its course, however, the Nikkei gradually pared its losses to recover 10,000 by the morning close.
Despite the North Korean attack, the downside of Tokyo stocks were limited apparently because South Korea and the United States, among other countries, have been reacting calmly to the incident so far, said Yumi Nishimura, deputy general manager at Daiwa Securities Capital Markets Co.
"For now, there isn't much fear of an escalation of geopolitical risks," Nishimura said.
Also giving support to the Tokyo market were stability in
dollar-yen exchange rates and a shared view that Tokyo stocks still lag behind overseas equities in a global rally backed by excess liquidity.
"If the Nikkei finishes Wednesday's trading above 10,000, the
undertone of Tokyo equities will likely be confirmed to be steady," another Japanese brokerage house official said.
Falling issues outnumbered rising ones 1,015 to 471 on the TSE's first section in the morning, while 170 issues were unchanged.
Half-day volume came to 1,127 million shares.
Losers among exporters included electronics makers Sony, TDK and Fanuc and automakers Toyota, Nissan and Mazda.
Megabanks Mizuho and Mitsubishi UFJ suffered losses, as did
steelmakers Nippon Steel and Sumitomo Metal.
Selling also hit shipping companies Nippon Yusen and Mitsui O.S.K. Lines.
On the plus side were telecom carrier Softbank, truck maker Isuzu and real estate developer Leopalace21.
Trading house Sojitz jumped 8.44 pct thanks to a reported plan to acquire a major rare earth interest from an Australian company.
At the morning close, the 225-issue Nikkei average stood down 75.76 points, or 0.75 pct, at 10,039.43. On Monday, the key market rose 92.80 points to mark the fourth straight day of gains.
The Tokyo market was closed Tuesday for a national holiday.
The TOPIX index of all first-section issues was 7.04 points, or 0.80 pct, lower at 868.44, after gaining 5.96 points the previous trading day.
The Nikkei shed over 200 points to a level just a hair above 9,900 in early trading, with many export-oriented issues coming under
profit-taking pressure following North Korea's deadly attack Tuesday on a South Korean island near a disputed maritime border in the Yellow Sea. South Korea returned fire.
Sharp falls in overseas equities in overnight trading, which
stemmed from the clash on the Korean Peninsula as well as from lingering European credit woes, also prompted selling of Tokyo stocks, brokers said.
After the initial wave of sales ran its course, however, the Nikkei gradually pared its losses to recover 10,000 by the morning close.
Despite the North Korean attack, the downside of Tokyo stocks were limited apparently because South Korea and the United States, among other countries, have been reacting calmly to the incident so far, said Yumi Nishimura, deputy general manager at Daiwa Securities Capital Markets Co.
"For now, there isn't much fear of an escalation of geopolitical risks," Nishimura said.
Also giving support to the Tokyo market were stability in
dollar-yen exchange rates and a shared view that Tokyo stocks still lag behind overseas equities in a global rally backed by excess liquidity.
"If the Nikkei finishes Wednesday's trading above 10,000, the
undertone of Tokyo equities will likely be confirmed to be steady," another Japanese brokerage house official said.
Falling issues outnumbered rising ones 1,015 to 471 on the TSE's first section in the morning, while 170 issues were unchanged.
Half-day volume came to 1,127 million shares.
Losers among exporters included electronics makers Sony, TDK and Fanuc and automakers Toyota, Nissan and Mazda.
Megabanks Mizuho and Mitsubishi UFJ suffered losses, as did
steelmakers Nippon Steel and Sumitomo Metal.
Selling also hit shipping companies Nippon Yusen and Mitsui O.S.K. Lines.
On the plus side were telecom carrier Softbank, truck maker Isuzu and real estate developer Leopalace21.
Trading house Sojitz jumped 8.44 pct thanks to a reported plan to acquire a major rare earth interest from an Australian company.
