Japan's Nikkei sinks to 3-week low as stronger yen hurts autos
04/12/2023 02:53
By Kevin Buckland
TOKYO, Dec 4 (Reuters) - Japan's Nikkei share average
sank to a nearly three-week low on Monday as a stronger yen
dented the earnings outlook for the nation's exporters, with
automakers leading declines.
The Nikkei .N225 lost 0.64% to 33,216.05 as of the midday
recess, after earlier sliding as much as 1.22% to reach
33,023.04 for the first time since Nov. 14.
The broader Topix .TOPX slumped 0.78%.
Transport equipment .ITEQP.T was by far the worst
performer among the Tokyo Stock Exchange's 33 industry groups,
declining 2.38%.
The yen pushed to a nearly three-month high of 146.235 per
dollar JPY=EBS on Monday before easing back to around 146.65.
"There's a strong impression that stocks are being pulled
around by moves in currency markets," said Kazuo Kamitani, a
strategist at Nomura Securities.
At the same time, "I think it would be quite difficult for
yen strength to reach 144 or 143 per dollar, and this may
instead be a near-term peak," he added.
With the Nikkei's 25-day moving average pointing strongly
upward, "if there is some positive driver, it wouldn't be
strange for the Nikkei at any moment to push toward 34,000,"
Kamitani said.
The Nikkei reached a 33-year peak on Nov. 20 at 33,853.46.
On Monday, 164 of the index's 225 components fell, versus 59
that rose and two that were flat.
Mazda 7261.T was the worst-performing auto stock, dropping
3.93%, while Toyota 7203.T lost 2.26% and Nissan 7201.T sank
3.29%.
The biggest percentage decliner, however, was online company
CyberAgent 4751.T with a 4.52% slump.
Semiconductor-related shares also underperformed, with
chip-making equipment giant Tokyo Electron and chip-testing
machine maker Advantest the two biggest drags. The stocks sank
0.9% and 1.58% respectively.
At the other end, real estate was the only Nikkei sector to
advance. Sumitomo Realty & Development 8830.T and Tokyo
Tatemono 8804.T rose 1.8% each.
(Reporting by Kevin Buckland; Editing by Mrigank Dhaniwala)
((Kevin.Buckland@thomsonreuters.com;))