Japan stocks end lower as yen firms; SoftBank Group blunts losses
09/11/2021 07:06
TOKYO, Nov 9 (Reuters) - Japanese shares pulled back from
midday gains to end lower on Tuesday, hurt by a stronger yen and
some discouraging earnings, although a standout performance in
tech stocks led by SoftBank Group limited losses.
The Nikkei .N225 closed 0.75% lower at 29,285.46, after
rising as much as 0.82% earlier in the session. The broader
Topix .TOPX slipped 0.81% to 2,018.77.
Of the Nikkei's 225 constituents, 184 fell and 39 rose, with
two unchanged. Tech was the only winning sector, adding 0.75%.
During the afternoon session, the yen JPY=EBS firmed to as
strong as 112.73 against the dollar, a level last seen on Oct.
11.
Stocks rose earlier on a weaker yen and favourable financial
results, but the market is ripe for a correction as the currency
firms and the earnings season tapers, said a market participant
at a domestic securities company.
Disappointing financial results weighed, with Kawasaki Heavy
Industries 7102.T tumbling 9.24% to be the worst performer on
the Nikkei, and Fujikura 5803.T sliding 6.61%.
Among other notable decliners, Uniqlo operator Fast
Retailing 9983.T lost 3.16%, Toyota Motor 7203.T fell 1.63%
and Sony Group 6758.T dipped 0.97%.
"Japan isn't seeing the speed of economic recovery of
somewhere like the United States, so it seems likely the Nikkei
will continue to be hemmed in around 29,500 for the time being,"
said another market participant at a domestic securities firm.
Many tech-related stocks shone, led by startup investor
SoftBank Group 9984.T , which added 10.50% to be the top gainer
on the Nikkei.
The company announced a 1 trillion yen ($8.9 billion) share
buyback after the market closed on Monday, even as it revealed a
quarterly loss. urn:newsml:reuters.com:*:nL1N2S000C
Smartphone app company DLE Inc 3686.T surged 15.38% after
announcing financial results.
Internet Initiative Japan Inc 3774.T jumped 7.87% after
SMBC Nikko Securities upgraded the stock and raised its target
price.
(Reporting by Tokyo markets team; Editing by Ramakrishnan M.)
((Kevin.Buckland@thomsonreuters.com;))