Japanese shares on three-day losing streak, yen up versus dollar
October 2, 2014 5:21 am
Japanese shares dropped with the Topix set to experience its biggest slump since August following the strengthening of yen versus the dollar that weakened exporter’s earnings forecast.
The Topix index shed 2.3% to 1,288.41, 12:42 pm, Tokyo time. The gauge is set to drop its biggest loss yet in two months. All 33 of the index’s industry groups retreated. The gauge is now 4% below its six-year high that was achieved last month. The Nikkei 225 Stock Average dropped 2% to 15,767.23 as the nation’s currency added 0.3% to match the dollar at 108.61 yen per dollar. It is the second day of incline for the currency that now totals 0.7% in gains since yesterday.
Japan Airlines along with ANA Holding lost 3% and 2% respectively while Honda Motor tanked 4% following reports of a scale back in Japanese production. Toyota Motor Corp., meanwhile, plunged 3.2%. Minebea Co. and Mitsui Fudosan Co. are also in the red as they sank by 5% and 4.2% respectively.
Strategist at CMC Markets, Desmond Chua, commented to Bloomberg that the market might still be looking at a form of correction for the near term until the market sees a more stable stance from the Bank of Japan that will be, hopefully, ready to supply stimulus. Chua adds that there might more slowdowns to come for Japan as BOJ is not yet ready to act at this point in time.
The material has been provided by InstaForex Company – www.instaforex.com
Japanese shares dropped with the Topix set to experience its biggest slump since August following the strengthening of yen versus the dollar that weakened exporter’s earnings forecast.
The Topix index shed 2.3% to 1,288.41, 12:42 pm, Tokyo time. The gauge is set to drop its biggest loss yet in two months. All 33 of the index’s industry groups retreated. The gauge is now 4% below its six-year high that was achieved last month. The Nikkei 225 Stock Average dropped 2% to 15,767.23 as the nation’s currency added 0.3% to match the dollar at 108.61 yen per dollar. It is the second day of incline for the currency that now totals 0.7% in gains since yesterday.
Japan Airlines along with ANA Holding lost 3% and 2% respectively while Honda Motor tanked 4% following reports of a scale back in Japanese production. Toyota Motor Corp., meanwhile, plunged 3.2%. Minebea Co. and Mitsui Fudosan Co. are also in the red as they sank by 5% and 4.2% respectively.
Strategist at CMC Markets, Desmond Chua, commented to Bloomberg that the market might still be looking at a form of correction for the near term until the market sees a more stable stance from the Bank of Japan that will be, hopefully, ready to supply stimulus. Chua adds that there might more slowdowns to come for Japan as BOJ is not yet ready to act at this point in time.
The material has been provided by InstaForex Company – www.instaforex.com
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