Nikkei little changed, pinned down by rates worry
21/11/2022 04:05
SINGAPORE, Nov 21 (Reuters) - Japan's Nikkei share
average .N225 was flat on Monday, hovering below 28,000, as
rising COVID-19 cases in China cast a pall over investors' mood
in Asia and traders awaited more clarity on the direction of
interest rates and inflation.
The Nikkei was flat at 27,889 just after the lunch break.
The broader Topix .TOPX was flat at 1,967. Both indexes have
been treading water for about a week. Volumes were expected to
be light due to U.S. and Japanese holidays later in the week.
"Financial markets are trying to find the balance between
the room for further rate hikes versus the extent to which the
U.S. and global economy will slow," said Masayuki Kichikawa,
Chief Macro Strategist at Sumitomo Mitsui Asset Management.
Japan's economy, he said, was looking steady as the
post-pandemic reopening gathers pace and inflation finally picks
up after years of deflation, although the global outlook and its
implications for Japan's exporters kept markets cautious.
Sapporo Holdings Ltd 2501.T led gains with a 3% rise.
Re-opening hopes have driven the brewer's stock more than 7%
this month and it is on course for a fourth consecutive monthly
rise.
Trading houses have also performed well, benefiting from
high and volatile commodity and energy prices. Shares in
Marubeni 8002.T were up 2% at lunchtime and touched a record
high of 1,514 yen in morning trade. They are up 34% this year.
Those rises were offset by falls led by insurer Sompo
Holdings 8630.T , which fell 9% after reporting a six-month net
loss aftermarket on Friday. Soft results earlier in the month
have also been a drag on Nintendo 7974.T and shares fell 1%.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 0.52 billion, compared to the average of
1.28 billion in the past 30 days. The dollar was steady at
140.38 yen JPY during the session.
(Reporting by Tom Westbrook in Singapore; Editing by Savio
D'Souza)
((tom.westbrook@tr.com; +65 6973 8284;))