http://biz.yahoo.com/rf/021215/markets_japan_stocks_7.html
Reuters
Nikkei extends losing streak as yen
hits exporters
Sunday December 15,
By Nathan Layne
(Adds
byline, more stocks, quotes, volume)
TOKYO, Dec 16 (Reuters) -
Tokyo's Nikkei average was headed for its longest losing streak in eleven years
by midsession on Monday, with Tokyo Electron (Tokyo:8035.T - News) and other exporters under
pressure due to a sharp jump in the yen and weak U.S. stocks.
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The Nikkei (^N225 - News) was down 0.81 percent or
69.27 points at 8,446.80, poised to post a nine-day losing streak for the first
time since 1991. The broader TOPIX index (^TOPX - News) of all first section issues
fell 0.90 percent or 7.50 points to 828.27.
Chip equipment maker Tokyo
Electron gave up 3.24 percent to 5,080 yen after a rise in the yen to a
one-month high on the dollar and a 2.65 percent tumble in the U.S. Nasdaq index
(NasdaqSC:^IXIC - News) amid growing concern about
a possible war in Iraq.
"Any strength in the yen
is a concern for (corporate) profits if it proves sustained," said Jeremy Hall,
associate director of Japanese equities at Henderson Global Investors Japan.
"It's not surprising to see exporters sold off a bit on the back of this."
Toyota Motor Corp
(
The dollar (JPY=) was
quoted at 120.44 yen in
A softer yen is seen by
many market participants as one of the last tools left to spur growth in the
struggling domestic economy, which has to contend with deflation, a mountain of
non-performing loans and soft consumer demand.
Uncertain of the economic
outlook, investors put money into defensive shares. Top drugmaker Takeda
Chemical Industries Ltd (
Volume was thin, with
338.42 million shares changing hands on the first section of the
TIMING THE BOUNCE
The Nikkei moved into
positive turf sporadically in the morning session and some brokerage traders
were trying to work out when an expected technical bounce would begin.
The Nikkei has lost eight
percent since December 3 and is less than two percent above a 19-year closing
low of 8,303 hit on November 14. Its 14-day relative strength index is below the
30 oversold line at 25, suggesting limited downside in the near term.
"We may very well bounce
in the afternoon today," said Ken Masuda, senior dealer at Shinko Securities.
"If not today, tomorrow. Japanese stocks are not likely to fall much more."
Among recently battered
shares, number-one ranked broker Nomura Holdings Inc (Tokyo:8604.T - News) rose 1.28 percent to 1,343
yen after tumbling to a one-month low on Friday. Mitsubishi Corp
(
An upcoming change that
will deprive investors of the option of paying a tax of 1.05 percent on the
value of a share transaction rather than a tax on realised capital gains was
another factor likely to depress sentiment.
This option, which tends
to be favoured by long-term, small investors, will be abolished at the end of
December. Retail investors have been dumping stock ahead of the change, which
will require that they pay a tax of 10 percent on capital gains.
"The obvious buyers are
absent at the moment. Part of that is seasonal and part of it is that foreigners
see no reason to buy