Wednesday, February 27, 2013
Nikkei Ends Lower On European Concerns
TOKYO (NQN)--Tokyo stocks ended lower again Wednesday, with the Nikkei Stock Average slipping 144.84 points, or 1.27%, to end the day at 11,253.97, its lowest close since Feb. 15.
Investors sold off cyclical issues in particular, including financial stocks and blue-chip exporters, on re-emerging worries over the European sovereign debt crisis and a pause in the yen's downtrend, which began in late December. Selling of Nikkei futures added to losses in the cash market.
In Europe, Italy's general election failed to produce a clear winner, which will force political parties to try to form a coalition government, and adds to the air of uncertainty.
Movements of the dollar and the euro versus the yen were relatively modest, but an official at a domestic brokerage said the yen's downward momentum has slowed. As the Japanese currency rallied, investors dumped exporter shares.
Meanwhile, property stocks rose on hopes they will benefit from further monetary easing by the Bank of Japan. Sumitomo Realty & Development Co. (8830) rose to its highest point since the start of 2012. Heiwa Real Estate Co. (8803) and Tokyu Land Corp. (8815) were also gainers. More money flowed into the real estate investment trust market, with the Tokyo Stock Exchange REIT Index rising for the eighth straight trading day. The index closed at 1,308.50, topping the psychologically important 1,300 mark for the first time since Aug. 13, 2008.