ID :
208627
Thu, 09/22/2011 - 07:58
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Shortlink :
http://m.oananews.org//node/208627
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Tokyo Stocks Fall in Morning after Dow's Plunge
Tokyo (Jiji Press) - Stocks fell back on the Tokyo Stock Exchange Thursday morning, battered by an overnight tumble of New York stocks.
At the morning close, the 225-issue Nikkei average stood down 142.84 points, or 1.63 pct, at 8,598.32, after rising 19.92 points on Wednesday.
The TOPIX index of all first-section issues was down 12.65 points, or 1.67 pct, at 744.48. It gained 2.09 points on the previous day.
The Nikkei average slipped below 8,600 for the first time in five sessions after the Dow Jones industrial average plunged 2.49 pct on disappointment over the outcome of the U.S. Federal Reserve's closely watched policy-setting meeting that ended Wednesday.
In its statement released after the Federal Open Market Committee meeting, the Fed did not hint at the possibility of launching a third round of quantitative easing, dubbed QE3, contrary to expectations of some investors.
Although the U.S. central bank decided on a set of additional monetary easing steps that basically fell within market expectations, "the Dow's reaction turned out to be severer than expected and investors here seem to have become nervous as a result," said Kenichi Hirano, operating officer of Tachibana Securities Co.
The Nikkei average failed to display resilience in the morning session, also pressured by lingering concerns over the yen's persistent strength and Europe's debt crisis, brokers said.
A wait-and-see mood is expected to prevail in the Tokyo market in afternoon trading ahead of a national holiday in Japan on Friday and a two-day meeting of Group of 20 finance ministers and central bank chiefs to be held in Washington through Friday.
"One key focus is whether emerging countries like Brazil will make proposals to support crisis-hit European nations via such ways as buying their debts" at meetings to be held on the sidelines of the G-20 conference, said Hirano of Tachibana Securities.
Declining issues overwhelmed advancing ones 1,329 to 219 on the TSE's first section in the morning, while 99 issues were unchanged.
Half-day volume came to 714 million shares.
Many exporters were hit by selling, including automakers Honda and Nissan and electronics issues Sony and Panasonic.
Financials also skidded lower. Megabanks Mizuho and Mitsubishi UFJ fell, while brokerage house Daiwa renewed its year-to-date low.
Telecommunications carrier Softbank tumbled 10.57 pct, hit by a media report that its rival KDDI will launch a new iPhone handset. Currently, Softbank is the sole distributor of Apple Inc.'s iPhone handsets in Japan.
Meanwhile, KDDI rose 1.27 pct.
Also higher were Fast Retailing, the operator of Uniqlo casual clothing stores, and minivehicle maker Daihatsu.
At the morning close, the 225-issue Nikkei average stood down 142.84 points, or 1.63 pct, at 8,598.32, after rising 19.92 points on Wednesday.
The TOPIX index of all first-section issues was down 12.65 points, or 1.67 pct, at 744.48. It gained 2.09 points on the previous day.
The Nikkei average slipped below 8,600 for the first time in five sessions after the Dow Jones industrial average plunged 2.49 pct on disappointment over the outcome of the U.S. Federal Reserve's closely watched policy-setting meeting that ended Wednesday.
In its statement released after the Federal Open Market Committee meeting, the Fed did not hint at the possibility of launching a third round of quantitative easing, dubbed QE3, contrary to expectations of some investors.
Although the U.S. central bank decided on a set of additional monetary easing steps that basically fell within market expectations, "the Dow's reaction turned out to be severer than expected and investors here seem to have become nervous as a result," said Kenichi Hirano, operating officer of Tachibana Securities Co.
The Nikkei average failed to display resilience in the morning session, also pressured by lingering concerns over the yen's persistent strength and Europe's debt crisis, brokers said.
A wait-and-see mood is expected to prevail in the Tokyo market in afternoon trading ahead of a national holiday in Japan on Friday and a two-day meeting of Group of 20 finance ministers and central bank chiefs to be held in Washington through Friday.
"One key focus is whether emerging countries like Brazil will make proposals to support crisis-hit European nations via such ways as buying their debts" at meetings to be held on the sidelines of the G-20 conference, said Hirano of Tachibana Securities.
Declining issues overwhelmed advancing ones 1,329 to 219 on the TSE's first section in the morning, while 99 issues were unchanged.
Half-day volume came to 714 million shares.
Many exporters were hit by selling, including automakers Honda and Nissan and electronics issues Sony and Panasonic.
Financials also skidded lower. Megabanks Mizuho and Mitsubishi UFJ fell, while brokerage house Daiwa renewed its year-to-date low.
Telecommunications carrier Softbank tumbled 10.57 pct, hit by a media report that its rival KDDI will launch a new iPhone handset. Currently, Softbank is the sole distributor of Apple Inc.'s iPhone handsets in Japan.
Meanwhile, KDDI rose 1.27 pct.
Also higher were Fast Retailing, the operator of Uniqlo casual clothing stores, and minivehicle maker Daihatsu.
