Japan's Nikkei inches down as automakers skid on yen strength

GS Yuasa

21/11/2023 06:37

(Updated at 0610 GMT)
       TOKYO, Nov 21 (Reuters) - Japan's Nikkei share average
ended marginally lower on Tuesday, as the yen's rebound against
the dollar prompted a sell-off in automakers' stocks. 
    The Nikkei  .N225  inched down 0.1% to 33,354.14 after
opening up 0.2% and trading marginally higher during the
session. 
    The broader Topix  .TOPX  slipped 0.2% to 2,367.79.
    "The Japanese market did not mirror the overnight Wall
Street's strength because of the yen's gain against the dollar,"
said Masahiro Ichikawa, chief market strategist at Sumitomo
Mitsui DS Asset Management.
    Wall Street's three major stock averages closed higher
overnight, with Nasdaq's 1% rally leading the charge as
heavyweight Microsoft hit a record high after it hired prominent
artificial intelligence executives.  .N 
     The yen regained its momentum as the dollar slipped to
fresh milestone lows against major currencies as China guided
the yuan higher.  FRX/ 
     Honda Motor  7267.T  lost 2.21% and Toyota Motor  7203.T 
slipped 1.62%. Mazda Motor  7261.T  dropped 4.5%.
     The autos sector index  .ITEQP.T  fell 1.75% to become the
worst performer among the Tokyo Stock Exchange's 33 industry
sub-indexes.
     A stronger yen weighs on exporters as it hurts the value of
overseas profits in yen terms when firms repatriate them to
Japan.
    "Investors sold stocks also to lock in profits after the
Nikkei hit its highest level in more than 30 years in the
previous session," said Ichikawa. 
    The Nikkei rose to its highest since March 1990 on Monday
before reversing course to end lower.
    Trading firms were weak, with Itochu  8001.T  falling 3.66%
and Mitsui & Co  8031.T  losing 2.9%,
    The wholesales index  .IWHOL.T  lost 1.69%.
    GS Yuasa  6674.T  tanked 10.82% after the battery maker
announced a plan to raise as much as 47.2 billion yen ($315.47
million) in a sale of new shares and third-party allotment to
Honda Motor. 
    Panel display maker Sharp  6753.T  jumped 9.52% to become
the top performer on the Nikkei.  
     

($1 = 149.6200 yen)

 (Reporting by Junko Fujita; Editing by Rashmi Aich and Mrigank
Dhaniwala)
 ((junko.fujita@thomsonreuters.com;))