October 1, 2014 / 2:17 AM / in 3 years

Nikkei little changed after mixed tankan data

* Tankan result gives limited impact to stock market -
    * Selling in emerging market currencies can be a threat to
Japanese market - analyst
    * Ibiden tumbles after cutting profit outlook

    By Ayai Tomisawa
    TOKYO, Oct 1 (Reuters) - Japan's Nikkei share average was
little changed in choppy trade on Wednesday, with a weak yen
supporting sentiment despite mixed data from the Bank Of Japan's
tankan survey.
    Business confidence among Japanese manufacturers improved
for the first time in two quarters in the three months to
September, a central bank survey showed, an encouraging sign
that parts of the economy are stabilising. 
    However, sentiment for the services sector worsened more
than expected, suggesting some companies are still struggling to
shake off the impact of a sales tax hike in April.
    The Nikkei share average was up 0.2 percent at
16,200.15 points by mid-morning, recouping early losses.
    "The tankan survey gave the market a mixed message," said
Hikaru Sato, a senior technical analyst at Daiwa Securities.
    "The yen is still weak, so investors are responding to the
weak yen. If setiment in both manufactures and services sectors
was bad, there might have been expectations for easing, but the
mixed data provided no direction to the market."
    Other market observers said that a concern simmering in the
global market is a sell-off in emerging market currencies
against the dollar due to rising interest rates in the U.S.
    Emerging equities were set for their biggest quarterly loss
in more than a year and currencies traded at multi-months low
against a rising dollar, with Russian stocks and the rouble
among the worst performers of the past three months.
    "The Japanese market has been able to escape a blow from a
sell-off in emerging market currencies thanks to the weak yen,
but you can't stay overly optimistic because it can be a
threat," said Norihiro Fujito, a senior investment strategist at
Mitsubishi UFJ Morgan Stanley Securities.
    "Anything could trigger a correction, like an unwinding in
yen selling, and we need to monitor hedge funds' moves on when
they start booking profits from the recent gains in the Nikkei."
    Helped by the weakening yen and building momentum in the
U.S. economy, the Nikkei reached seven-year highs last month.
For September, the benchmark gained 4.9 percent.
    The dollar was at 109.64 yen, having scaled a
six-year peak of 109.86 yen.
    Exporters were mixed despite the weak yen as some investors
took profits from the recent gains. Toyota Motor Corp 
rose 0.5 percent, but Nissan Motor Co dropped 1.0
percent and Panasonic Corp added 0.2 percent.
    Ibiden Co, however, nosedived 12 percent after it
cut its full-year net profit outlook to 11 billion yen from
previously forecast 16.5 billion yen.
    The broader Topix rose 0.1 percent to 1,327.63 and
the JPX-Nikkei Index 400 advanced 0.1 percent to

 (Editing by Kim Coghill)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below