Japan's Nikkei sinks to 3-week low as stronger yen hurts autos
04/12/2023 06:31
(Updates with closing prices)
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 closed down 0.6% at 33,231.27 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 0.83%.
Transport equipment .ITEQP.T was the worst performer among
the Tokyo Stock Exchange's 33 industry groups, declining 2.48%.
Mining .IMING.T was next with a 2.39% slide as a big drop
in crude prices took a toll on the oil explorers.
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, 170 of the index's 225 components fell, versus 54
that rose and one that was flat.
Mazda 7261.T was the worst-performing stock, dropping
3.93%. Heavyweight peers were also hit hard, with Nissan
7201.T sinking 3.27% and Toyota 7203.T losing 2.31%.
The biggest drag, though, was chip-making equipment giant
Tokyo Electron 8035.T with a 0.59% decline. Startup investor
SoftBank Group 9984.T was next, dipping 1.15%.
At the other end, shipping .ISHIP.T was far and away the
best performing TSE industry group, climbing 1.95%.
Real estate .IRLTY.T was the only other industry with a
notable gain, advancing 0.45%.
(Reporting by Kevin Buckland; Editing by Mrigank Dhaniwala and
Nivedita Bhattacharjee)
((Kevin.Buckland@thomsonreuters.com;))