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Tokyo stocks end lower on yen's recovery against dollar
[August 28, 2014]

Tokyo stocks end lower on yen's recovery against dollar


(Japan Economic Newswire Via Acquire Media NewsEdge) Tokyo stocks ended lower Thursday with investor sentiment soured as the yen regained some ground against the U.S. dollar.

The 225-issue Nikkei Stock Average fell 74.96 points, or 0.48 percent, from Wednesday to 15,459.86. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 5.18 points, or 0.40 percent, lower at 1,280.74.



Tokyo stocks traded on a soft note from the outset as the dollar stayed weak in the upper 103 yen zone.

In the afternoon, the key indexes moved narrowly in negative territory amid a lack of market-moving cues, said Toshihiko Matsuno, chief strategist at SMBC Friend Securities Co.


"Trading volume was light as many overseas investors seem to be still in summer holidays until Labor Day (on Monday)," Matsuno said.

"A lack of energy due to recent thin trading curbed investors' appetite for mainstay issues, pressuring the overall market," said Hiroichi Nishi, assistant general manager of equity research at SMBC Nikko Securities Inc.

Fast Retailing, one of the Nikkei's heavily weighted components, lost 400 yen, or 1.2 percent, to 32,665 yen and another such component KDDI went down 68 yen, or 1.1 percent, to 5,960 yen.

Meanwhile, the market's downside was supported by buying on dips stemming from investor expectations for the solid recovery of the U.S. economy, Nishi added.

Falling shares outnumbered rising ones 957 to 717 on the First Section, while 144 closed unchanged.

Export-related shares including automakers and electronics were broadly sold, with Toyota Motor falling 44 yen, or 0.7 percent, to 5,935 yen, Mitsubishi Electric shedding 17.00 yen, or 1.3 percent, to 1,301.50 yen and parts maker Denso dropping 77.50 yen, or 1.7 percent, to 4,504.50 yen.

Other major decliners included steel, rubber products and utility shares.

Isotropic graphite producer Toyo Tanso plunged 190 yen, or 7.5 percent, to 2,360 yen after Credit Suisse Securities downgraded its investment grade.

In contrast, game software retailer Geo Holdings rallied 36 yen, or 4.1 percent, to 916 yen in response to its announcement the previous day that the company will buy back up to 6.29 percent of its outstanding shares.

Trading volume on the main section totaled 2,030.49 million shares, slightly down from 2,051.55 million shares on Wednesday.

(c) 2014 Kyodo News

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