Tuesday, October 29, 2013
Nikkei Down On Dollar's Fall, Chinese Market Worries
TOKYO (NQN)--Tokyo stocks are stuck in negative territory Tuesday morning, with the Nikkei Stock Average moving around the upper-14,200 line.
The benchmark index briefly fell more than 170 points to 14,224 immediately after the opening bell before trimming its losses, but investors are still hesitant to buy. The dollar fell to the mid-97 yen range, weighing on Toyota Motor Corp. (7203), Honda Motor Co. (7267) and other major automakers. Also hurting sentiment is concerns over moves by the People's Bank of China, the country's central bank, to postpone its regular open-market operations in the short-term financial market for the second straight week.
On Monday, Komatsu Ltd. (6301) briefly fell more than 8% after the heavy equipment maker lowered its earnings forecast for the year ending March 2014. IHI Corp. (7013) raised its forecast for the April-September half. Keyence Corp. (6861), which saw much stronger sales and profit for the April-September period, rose more than 10%. A spokesman at a domestic brokerage said higher-than-forecast earnings are cheering investors.
But they are nevertheless adopting a wait-and-see approach, looking for trading clues from Chinese financial authorities. China's short-term interest rates have recently influenced the Tokyo market, mainly through trading of stock index futures.