Nikkei drops 1.44% as yen hits record-high, nuke crisis in spotlight
Tokyo stocks fell Thursday, with the key Nikkei stock index dropping 1.44 percent as the yen soared to a record-high level, but losses were capped as nervous investors were encouraged by Japanese authorities' progress in averting a nuclear disaster at a stricken power plant in Fukushima Prefecture.
Brokers said the U.S. dollars slide against its Japanese counterpart weighed heavily on the market as a strong yen diminishes exporter profits when the funds are repatriated and investors were concerned as the outlook for Japan's exporters is key to the nation's post-quake and tsunami recovery.
"Japan can only make a recovery from the disaster with the help of exporters, so a higher yen is negative," said Toshikazu Horiuchi, equity strategist at Cosmo Securities Co.
The U.S. dollar tumbled to a record low of 76.75 yen in early trade in Asia following news the Japanese government may delay intervening in the foreign exchange market to weaken its currency.
The yen traded at 79.08 per dollar towards the end of trading hours in Tokyo, from 79.59 booked in New York on Wednesday.
In morning trade the yen surged to a post-war high of 76.36, eclipsing the previous high of 79.75 logged in April 1995.
Analysts noted that some confidence returned to the market following Japan's Self Defense Force dumping water from helicopters to cool overheating reactors at the troubled Fukushima power plant.
Efforts to cool the crippled reactors were also supported by high-powered water canons supplied by the police force, and news that external power cables would become available to supply the facility's failed cooling systems, lessened losses Thursday market players said, noting that concerns remain high.
"There will be further relief for the markets if we can confirm this measure will lead to an actual drop in temperatures at the reactor," Horiuchi said.
The 225-issue Nikkei Stock Average dropped 131.05 points from Wednesday to 8,962.67, wh! ile the broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 6.83 points, or 0. 84 percent, to close at 810.80.
Exporters retreated on fears the yen's strength will damage profits and Sony relinquished 0.5 percent to 2,515 yen and Toyota fell 2.2 percent to 3,270 yen.
Industrial robotics maker Fanuc Corp. lost 4 percent and Canon Inc. retreated 3.3 percent from Wednesday.
Tokyo Electric Power Co. (TEPCO) owner and operator of the failing nuclear power station in Fukushima Prefecture, 240 km north of Tokyo, traded for the first time today.
The utility's stock plunged 13 percent to 798 yen, the firm's lowest close since March 1982. It has plunged by its daily allowable limit for the last three trading days.
Analysts said that TEPCO has lost 62 percent of its market value this week, or 27 billion U.S. dollars following the nuclear crisis and was the most actively-traded stock today by value in Japan.
Japan's central bank offering to inject a further 61 billion U. S. dollars into the market to boost financial institutions' liquidity and calm markets after the yen's rise, did little to bolster investor confidence Thursday, brokers said.
"Far more investors are looking to protect their assets by reducing risk, instead of looking to make profits," said Mitsushige Akino, an investment manager at Ichiyoshi Investment Management Co.
"We don't know what will happen to the nuclear plants and the government's pronouncements are losing credibility," he said.
In light of monumental insurance claims expected following Friday's colossal earthquake and tsunami that devastated regions in northeastern Japan Friday, insurance firms were among Thursday' s notable decliners.
Tokio Marine Holdings slumped 3.4 percent and MS&AD Insurance Group Holdings Inc. fell 1.7 percent. NKSJ Holdings Inc. meanwhile lost 3.4 percent from Wednesday.
Trading volume on Thursday fell to 4.10 billion shares on the Tokyo Exchange's First Section, d! own from Wednesday's volume of 4. 90 billion shares, with advancing issues outnumbering declining ones by 985 to 616.
Source: Xinhua
Weekly review
Brokers said the U.S. dollars slide against its Japanese counterpart weighed heavily on the market as a strong yen diminishes exporter profits when the funds are repatriated and investors were concerned as the outlook for Japan's exporters is key to the nation's post-quake and tsunami recovery.
"Japan can only make a recovery from the disaster with the help of exporters, so a higher yen is negative," said Toshikazu Horiuchi, equity strategist at Cosmo Securities Co.
The U.S. dollar tumbled to a record low of 76.75 yen in early trade in Asia following news the Japanese government may delay intervening in the foreign exchange market to weaken its currency.
The yen traded at 79.08 per dollar towards the end of trading hours in Tokyo, from 79.59 booked in New York on Wednesday.
In morning trade the yen surged to a post-war high of 76.36, eclipsing the previous high of 79.75 logged in April 1995.
Analysts noted that some confidence returned to the market following Japan's Self Defense Force dumping water from helicopters to cool overheating reactors at the troubled Fukushima power plant.
Efforts to cool the crippled reactors were also supported by high-powered water canons supplied by the police force, and news that external power cables would become available to supply the facility's failed cooling systems, lessened losses Thursday market players said, noting that concerns remain high.
"There will be further relief for the markets if we can confirm this measure will lead to an actual drop in temperatures at the reactor," Horiuchi said.
The 225-issue Nikkei Stock Average dropped 131.05 points from Wednesday to 8,962.67, wh! ile the broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 6.83 points, or 0. 84 percent, to close at 810.80.
Exporters retreated on fears the yen's strength will damage profits and Sony relinquished 0.5 percent to 2,515 yen and Toyota fell 2.2 percent to 3,270 yen.
Industrial robotics maker Fanuc Corp. lost 4 percent and Canon Inc. retreated 3.3 percent from Wednesday.
Tokyo Electric Power Co. (TEPCO) owner and operator of the failing nuclear power station in Fukushima Prefecture, 240 km north of Tokyo, traded for the first time today.
The utility's stock plunged 13 percent to 798 yen, the firm's lowest close since March 1982. It has plunged by its daily allowable limit for the last three trading days.
Analysts said that TEPCO has lost 62 percent of its market value this week, or 27 billion U.S. dollars following the nuclear crisis and was the most actively-traded stock today by value in Japan.
Japan's central bank offering to inject a further 61 billion U. S. dollars into the market to boost financial institutions' liquidity and calm markets after the yen's rise, did little to bolster investor confidence Thursday, brokers said.
"Far more investors are looking to protect their assets by reducing risk, instead of looking to make profits," said Mitsushige Akino, an investment manager at Ichiyoshi Investment Management Co.
"We don't know what will happen to the nuclear plants and the government's pronouncements are losing credibility," he said.
In light of monumental insurance claims expected following Friday's colossal earthquake and tsunami that devastated regions in northeastern Japan Friday, insurance firms were among Thursday' s notable decliners.
Tokio Marine Holdings slumped 3.4 percent and MS&AD Insurance Group Holdings Inc. fell 1.7 percent. NKSJ Holdings Inc. meanwhile lost 3.4 percent from Wednesday.
Trading volume on Thursday fell to 4.10 billion shares on the Tokyo Exchange's First Section, d! own from Wednesday's volume of 4. 90 billion shares, with advancing issues outnumbering declining ones by 985 to 616.
Source: Xinhua
Weekly review
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