TOKYO, Aug 19: Japan’s Nikkei share average erased earlier losses on Monday morning after the yen resumed its downward slide against the dollar, but investors stayed cautious due to a lack of positive cues.
The benchmark Nikkei, which has fallen 2.9 percent over the last two sessions, opened higher but then moved back and forth between positive and negative territory. It ended the morning session up 0.1 percent at 13,669.77, while the broader Topix also rose 0.1 percent to 1,143.29.
‘Apparently investors are not comfortable taking positions either way now,’ said Yasuo Sakuma, portfolio manager at Bayview Asset Management.
‘Unless some major players make a move regardless of the fundamentals, I think trading may remain subdued for a while due to the summer lull.’
U.S. Stocks fell slightly on Friday, and the Dow industrials posted the biggest weekly loss this year as rising bond yields hurt high-dividend shares and earnings from retailers disappointed investors.
The yen was last quoted at 97.50 yen per dollar, slightly stronger than an early morning high of 97.355 and further moving away from a seven-week low of 95.81 yen touched on August 8.
A weaker yen sharpens Japanese exporters’ competitive edge in global markets and boosts their dollar earnings when repatriated.
The oil & coal products subindex gained 2.5 percent and was the best sectoral performer after oil futures on both sides of the Atlantic ended higher for the sixth straight session on Friday, with Brent oil posting the biggest weekly percentage gain in six weeks as turmoil in Egypt and Libya stoked worries about oil supply security.
On the other hand, a fund manager at a Japanese asset management firm said that higher oil prices are hitting airline shares on concerns about rising fuel prices.
The air transport sector subindex shed 1.2 percent to become the second-worst sectoral performer, with Japan Airlines Co and ANA Holdings Inc declining 1.3 percent and 1 percent, respectively.
The benchmark Nikkei is up 31 percent this year, spurred by the government’s expansionary fiscal policy and the Bank of Japan’s aggressive monetary stimulus. (agencies)
Trending Now
E-Paper
Follow our WhatsApp channel