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imageTOKYO: Tokyo stocks tumbled 2.97 percent Friday as the dollar turned sharply lower against the yen, denting shares of major Japanese exporters.

The benchmark Nikkei 225 index ended down 432.95 points at 14,129.98, while the Topix index of all first-section shares lost 2.93 percent, or 35.26 points, to 1,167.06.

"The weaker dollar is the main culprit, partially on growing belief that the (US Federal Reserve) will opt to keep up its easing policy and make less use of rhetoric about 'tapering' its bond-buying programme, which has proved to be a powerful dollar support in the past," said an equity trading director at a foreign brokerage.

"The start to the present earnings reporting season has also not been rosy -- most likely as a result of unrealistic expectations. Players are now going to eye next week's results with even greater scrutiny, with the US Fed's July 30-31 meeting also coming up," he added.

The policy meeting will provide clues as to when the Fed will start rolling back its stimulus scheme aimed at stoking the world's largest economy. A tapering of the programme would mean fewer dollars in the financial system, boosting demand for the unit.

The dollar fell to its lowest level in about two weeks against the Japanese currency on Friday, trading at 98.70 yen compared with 99.24 yen in New York and well off the 100.00 yen level in Tokyo on Thursday.

The value of the yen tends to influence the Tokyo stock market as it has a direct impact on the profitability of exporters such as Toyota and Sony.

Friday's decline saw investors booking profits ahead of the weekend as the earnings season gets under way.

Also providing a little support to the yen was news that Japan logged its first monthly price rise in more than a year in June, although the hike was mainly driven by surging energy costs.

Nissan slumped 1.34 percent to 1,097 yen after it said Thursday net profit rose 14 percent in April-June but warned that its performance was held back by poor demand in China and Europe.

Other automakers also fell, with Toyota down 3.60 percent at 6,150 yen.

Canon sagged 2.46 percent to 3,165 yen after lowering its full-year earnings forecast due to worse-than-expected economic conditions in China and slowing demand for its digital cameras.

Uniqlo clothing chain operator Fast Retailing lost 3.27 percent to 35,450 yen.

Copyright AFP (Agence France-Presse), 2013


 



 
Index Closing Chg%
Arrow DJIA 17,810.06 0.51
Arrow Nasdaq 4,712.97 0.24
Arrow S&P 2,063.50 0.52
Arrow FTSE 6,750.76 1.08
Arrow DAX 9,732.55 2.62
Arrow CAC-40 4,347.23 2.67
Arrow Nikkei 17,357.51 0.33
Arrow H.Seng 23,437.12 0.37
Arrow Sensex 28,334.63 0.95






Banking Review 2013


Annual2013/14
Foreign Debt $61.805bn
Per Cap Income $1,386
GDP Growth 4.14%
Average CPI 8.6%
MonthlySeptember
Trade Balance $-2.380 bln
Exports $2.181 bln
Imports $4.561 bln
WeeklyNovember 13, 2014
Reserves $13.268 bln