Nikkei falls for 5th day as yen strengthens on US fiscal worries

Fri Nov 9, 2012 7:51am IST

Related Topics

* Nikkei stays below major support lines
    * Nikkei may hit 8,500 before it picks up - analyst

    By Ayai Tomisawa
    TOKYO, Nov 9 (Reuters) - Japan's Nikkei share average fell 1
percent on Friday, extending declines into a fifth day on
investor caution about U.S. fiscal woes and discouraging
developments in Europe that have sent the yen climbing against
the dollar and the euro.
    The re-emergence of macro-economic concerns comes amid a
weak quarterly earnings season that has seen many companies cut
their annual guidance.
    "Investors were overly optimistic that they had thought that
the market would price in the U.S. election result and would buy
Japanese stocks whose valuations are cheap," said Masatoshi
Sato, a senior strategist at Mizuho Investors Securities.
    "It's too early to price in all the negative factors. The
market may not pick up unless the index hits bottom around a
psychological support level of 8,500."
    Key concerns for investors include the U.S. fiscal cliff -
$600 billion in spending cuts and tax increases due to take
effect early next year, as well as few signs of progress in
Europe's debt crisis.
    The euro is trading near one-month lows against the yen,
under pressure after ECB President Mario Draghi said the euro
zone economy showed little sign of recovering before the
year-end despite easing financial market conditions.
    In early trade, the Nikkei dropped 1.1 percent to
8,739.06. It is trading below its 25-day moving average of 8,862
99 and its 13-week moving average at 8,874.40.
    The broader Topix index fell 1 percent to 728.23. 
    "The index has breached major support lines and there are
worries that exporters may not meet their full-year targets even
after they reduced their outlooks," said Hiroichi Nishi, general
manager at Nikko Cordial Securities.
    "But the volume of selling may not be that big today ahead
of the weekend," he added
    Carmakers and electronics makers led losses, with Toyota
Motor Corp, Honda Motor Co, Toshiba Corp
 and Nikon Corp declining between 1.6 percent
to 1.8 percent.
     Nexon Co Ltd slumped 9.7 percent to a record low
of 827 yen after the online game provider cut its full-year
operating profit forecast for the year ending December.
    Tsumura & Co surged 8.1 percent to a 28-month high
after the manufacturer of Chinese medicine raised its full-year
operating profit forecast and annual dividend estimate, citing
better sales.
FILED UNDER:

Reforms Push

REUTERS SHOWCASE

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

26/11 Plotter

26/11 Plotter

Pakistan to challenge bail for Mumbai attack "mastermind".  Full Article 

Chinese Economy

Chinese Economy

China revises up size of 2013 economy, sees no effect on 2014 growth.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage