Comments
Japan’s Nikkei share average fell on Friday after US and European shares languished, as investors stayed cautious before the release of US jobs data later in the day that might give a clue to the timing of an increase in US interest rates.
The Nikkei 225 dropped 0.5 per cent to 20,396.23 in midmorning trade, moving away from a 15-year high of 20,655.33 hit nearly a week ago.
Investors are focused on US jobs data, expected to show a 225,000 gain in non-farm payrolls, according to a Reuters estimate.
Bond market
Volatility in the European bond market continued to weigh on investor sentiment although a sell-off in bonds paused. Global bond yields swung wildly for a third straight session before ending well below their highs.
The Nikkei has gained 17 per cent this year, outperforming most of its global peers. The index had gained for 12 straight gains through last Monday, stoking concerns that a significant correction could be imminent.
Still, some investors expect that the Japanese market to rise further in the medium term, helped by economic recovery hopes and prospects for higher corporate profits.
“Since the Japanese market is sensitive to global market performances, investors are nervous because of recent volatility in the global bond market,’’ said Takuya Takahashi, a strategist at Daiwa Securities.
“Foreign funds which think they missed the bus may still want to buy now, but a lot of people prefer to stay on the sidelines.’’
Sharp Corp fell 2.3 per cent after Kyodo News reported that the struggling electronics maker is set to post a net loss of ¥180 billion yen in the fiscal year ending March 2016.
Takata Corp declined 1.6 per cent after sources said that at least 400,000 of the 4 million replacement inflators for its defective air bags will need to be replaced again in US vehicles.
Insurers, which gained on higher yields early this week, lost ground on profit-taking, with Dai-ichi Life Insurance falling 2.3 per cent and Tokio Marine Holdings dropping 2.0 per cent.
The broader Topix dropped 0.7 per cent to 1,662.39 and the JPX-Nikkei Index 400 shed 0.7 per cent to 15,003.58.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.