Nikkei edges down on poor U.S. data; Sharp up on Qualcomm deal

Tue Dec 4, 2012 7:28am IST

Related Topics

* Nikkei finds support at 9,400 - analyst
    * Sharp up more than 2 pct on Qualcomm deal
    * Paper companies drop on Merrill rating cuts

    By Ayai Tomisawa
    TOKYO, Dec 4 (Reuters) - Japan's Nikkei share average edged
down on Tuesday, trimming gains from a seven-month closing high
in the previous session as weak U.S. economic data triggered
profit-taking on exporters.
    The Nikkei was down 0.3 percent at 9,432.88, moving
further away from Monday's peak when it pierced the
psychologically important 9,500 resistance line for the first
time since April 27.
    Analysts said investors were wary of looming uncertainty
over the U.S. economy, which is key to the fortunes of Japan's
exporters, many of which rely on consumption in the world's
biggest economy.
    Manufacturing activity in the United States surprisingly
contracted in November, hitting its lowest level in more than
three years, while there has been no resolution to the country's
so-called fiscal cliff.  
    Canon Inc dropped 1.1 percent, Nikon Corp 
shed 1.9 percent and Toyota Motor Corp fell 0.1
percent.
    "Investors are cautious about the market's sharp rise in the
past few weeks, and as soon as the Nikkei hit the 9,500-mark,
trading has slowed down. Investors started taking a wait-and-see
mode," said Hiroichi Nishi, general manager at SMBC Nikko
Securities.
    The Nikkei should find support at 9,400 for Tuesday, he
said.
    During the past 2-1/2 weeks, the benchmark has rallied 9.2
percent, led by exporters, as the yen has fallen on speculation
the Bank of Japan will be pushed to adopt aggressive policy
action after the Dec. 16 election. A weaker yen lifts the value
of exporters' overseas incomes when repatriated.
    The leader of the main opposition Liberal Democratic Party,
Shinzo Abe, has been calling for the Bank of Japan to take
bolder action, including setting a 2 percent inflation target
and embarking on "unlimited easing". The LDP is expected to win
the most seats and form the government after the election.
    "Such positive news for the currency has been priced into
the current market," said Kenichi Hirano, a strategist at
Tachibana Securities. "Foreign investors will likely hold
exporters at least until the election."
    The currency last traded at 82.06 yen to the dollar, down
from its 7-1/2-month low of 82.84 touched on Nov. 22 but still
above the 82 yen threshold. A fall below this level could
trigger selling in the equities market, analysts have said.
    Bucking overall market weakness, struggling display panel
maker Sharp Corp gained as much as 2.9 percent to 177
yen in early trade after two sources familiar with the matter
said it and U.S. chipmaker Qualcomm Inc have agreed to
jointly develop next-generation displays. 
    Paper makers lost ground, with Hokuetsu Kishu Paper Co
, Oji Holdings Corp and Nippon Paper Group Inc
 falling between 2.8-3.8 percent after Bank Of America
Merrill Lynch cut their ratings.
    The broader Topix was flat at 781.81.
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Shares Hit Record

Sensex, Nifty rise to second consecutive record high

Sensex surges 500 points on BOJ easing, L&T gains

The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro.  Full Article 

REUTERS SHOWCASE

Wilful Negligence?

Wilful Negligence?

SEBI piles pressure on Sahara to sell overseas hotels  Full Article 

Indian Economy

Indian Economy

India's fiscal deficit in H1 almost 83 pct of full-year target.  Full Article 

M&M Earnings

M&M Earnings

M&M Q2 net profit down 4 percent, hit by poor monsoon.  Full Article 

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Reuters India Mobile

Reuters India Mobile

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