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TOKYO: Japanese share prices closed down 1.31 percent
Wednesday, falling for a 10th straight session in the market’s
longest losing streak in more than 43 years, dealers said.
Dealers said investors were
hesitant ahead of upcoming US jobs data and an interest rate
decision in the eurozone that could result in a stronger yen, which
would be bad for exporter earnings.
The Tokyo Stock Exchange’s
benchmark Nikkei-225 index dropped 176.83 points to end at
13,286.37. The broader Topix index of all first-section shares
slipped 18.92 points to 1,301.15.
The last time the benchmark index
fell for 10 consecutive sessions was in February 1965.
"The impact of selling
pressure turned out to be quite big as trading was thin ahead of the
release of key indicators," said Kazuhiro Takahashi, a senior
analyst at SMBC Daiwa Securities.
"Right now, negative
factors, led by oil prices and a slowdown in the US economy, are
mounting in the market, while the perspective for the Japanese
economy is dim as the Tankan showed," Takahashi said.
The Bank of Japan released its
Tankan business sentiment survey on Tuesday which showed growing
concerns about a bad business climate, particularly among small
businesses.
"It would be no surprise if
the Nikkei index fell for an 11th straight day tomorrow,"
Takahashi said.
Dealers also said shares were hit
by the dollar’s weakness amid expectations about a rise in the
European Central Bank interest rate.
"All the bad news is coming
from outside of the country for sure, but the Japanese market
isn’t attractive enough to entice investors either,"
Masatoshi Kikuchi, chief Japan equity strategist at Merrill Lynch,
told Dow Jones Newswires.
Investors here drew little
comfort from events on Wall Street, where stocks ended in positive
territory Tuesday following a volatile day of trading.
Traders said General Motors’
better-than-expected monthly sales helped give stocks a boost even
though the auto giant reported a drop in demand.
"At this point of the week,
there are few reasons to chase the market higher," said Motomi
Hiratsuka, head of Japan client coverage at BNP Paribas, told Dow
Jones.
Japanese marine transport shares
were Wednesday’s big losers as the Baltic Dry Index of freight
rates dropped. Mitsui O.S.K. fell 3.8 percent to 1,437 yen and
Kawasaki Kisen lost 3.2 percent to 970 yen.
Exporters were sold as the dollar
traded below 106 yen. Toyota Motor shed 1.4 percent to 4,940 yen and
Canon slipped 2.6 percent to 5,200 yen.
--AFP
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