Asian Economic News
Japanese Market Trades Weak On Wall Street Cues, Stronger Yen
11/19/2009 9:17 PM ET
(RTTNews) -
The Japanese stock market is trading weak on Friday with the overnight negative close on Wall Street and a stronger yen triggering a sell-off almost across the board. Concerns over deflation and unemployment are also contributing to the weakness.
The benchmark Nikkei 225 index is currently down with a loss of 121.5 points or 1.27% at 9,428. The index had ended at 9549.5 on Thursday, recording a loss of 127.3 points or 1.32%.
Automobile stocks are mostly down in the red. Honda Motor, Suzuki Motor, Toyota Motor and Nissan Motor are down with notable losses.
In the banking space, Sumitomo Mitsui Financial, Sumitomo Trust and Banking, Chiba Bank and Mizuho Financial are trading notably higher.
Steel and non-ferrous metals stocks are trading lower. Machinery and electric machinery stocks are also mostly down in negative territory. Shares of trading companies, insurance firms and retail houses are also exhibiting weakness.
Shares of electric machinery maker Sony Corp. are down by about 2%. The company is reportedly aiming for an operating profit margin of 5% in fiscal 2012. Though this target will be a tough one for the electronics giant, its overseas rivals are already far past that mark.
In economic news, the Bank of Japan will wrap up its two-day monetary policy meeting on Friday, and will then announce its decision on interest rates. The BoJ is widely tipped to keep rates on hold at the current record low of 0.10%, although analysts will be watching for clues on future monetary policy.
Meanwhile, the House of Representatives passed a bill to encourage lenders to freeze debt repayments by small and midsize companies after the Democratic Party of Japan and its ruling coalition partners forced a vote. The move followed approval of the measure by the lower house's Financial Affairs Committee on Thursday afternoon.
In the currency market, the U.S. dollar traded in the upper 88 yen range early Friday in Tokyo after falling to a one-and-a-half-month low overnight in New York. In early trades, the dollar fetched 88.91-88.94 yen against Thursday's close of 88.93-89.03 yen in New York and 88.90-88.92 yen in Tokyo. The yen is currently trading at 89.01 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Australia, New Zealand, Shanghai and Taiwan are trading notably lower. Singapore and South Korea are also exhibiting weakness. Markets across the region had turned in a mixed performance on Thursday.
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