Tokyo stocks edge down on N.Korea missile concern

TOKYO: Tokyo stocks edged down on Tuesday, with investor sentiment depressed by media reports that Japan had detected signs of activity at a North Korean missile site.

The benchmark Nikkei 225 index fell 0.04 percent, or 9.75 points, to close at 22,486.24. The broader Topix index was down 0.26 percent, or 4.66 points, at 1,772.07.

Japanese media, quoting anonymous government sources, reported early Tuesday that Tokyo was on higher alert after detecting radio signals suggesting North Korean preparations for a ballistic missile launch were underway.

"North Korea might launch a missile within the next few days," Kyodo News quoted one of the sources as saying.

Pyongyang last fired a missile, over Japan, in mid-September.

The defence ministry would not confirm the report.

Worries over another North Korea missile test "weigh on sentiment", said Makoto Sengoku, market analyst at Tokai Tokyo Research Centre.

But Sengoku added that a launch "could not be a huge drag" in the longer term.

"Any drop after a missile firing would provide an opportunity to buy," he said.

The dollar, which temporarily fell below 111 yen following the reports, changed hands at 111.17 yen Tuesday afternoon, up from 111.09 yen in New York Monday afternoon.

Investors tend to flock to the yen in times of uncertainty but its uptrend is negative for Japanese exporters.

Toray dropped 5.29 percent to 1,046 yen after the synthetic fibre company said it was holding a press conference later Tuesday on the faking of production data at a subsidiary.

It is the latest major Japanese firm to acknowledge problems with quality control.

SoftBank fell 0.24 percent to 9,754 yen following news reports that the technology giant and a coalition of investors would offer to buy shares in Uber Technologies at a price that would value the ride-hailing company at 30 percent less than its most recent $69 billion valuation.

Sony lost 0.57 percent to 5,332 yen but Toyota rose 0.17 percent to 7,038 yen, with rival Nissan down 0.04 percent at 1,076 yen.