Wednesday August 4, 2:49 am Eastern Time
(Note: this article is ''in progress''; there will likely be an update soon.)
Tokyo Nikkei ends lower as forex action hopes wane
By Miki Shimgori
TOKYO, Aug 4 (Reuters) - Tokyo stocks sagged on Wednesday as hopes waned for any
immediate U.S.-Japan joint action to bolster a weakened dollar clouding earnings prospects for Japan's mighty exporters.
Market disappointment over a lack of joint action on currency spurred sales of blue-chip electronics makers such as Fujitsu
Ltd , Sony Corp and Matsushita Electric Industrial Co Ltd .
Fujitsu fell 4.76 percent or 170 yen to 3,400, Sony shed 2.77 percent or 400 yen to 14,040 and Matsushita ended down
5.6 percent or 155 yen at 2,615.
Internet-savvy Softbank Corp fell 8.93 percent or 2,750 yen to 28,050 following an overnight dive in U.S. Internet-related
stocks.
''The market had long been driven by a very limited number of core issues like Fujitsu, Sony and Softbank. Those issues are
now entering a corrective phrase, which had a widespread effect on the whole market,'' said Hiroichi Nishi, deputy general
manager at Nikko Securities.
The benchmark Nikkei 225 average finished down 284.55 points or 1.58 percent at 17,685.38.
September Nikkei futures <0#JNI:> were 310 points lower at 17,620.
Miyazawa said on Wednesday a phone conversation he had with U.S. Treasury Secretary Lawrence Summers on Tuesday
was organised when the dollar seemed set to fall under 115 yen.
His reference to that level failed to inspire the market, however, and the dollar stood just above 115.00 yen in Tokyo
afternoon trade against 115.22/32 in late New York on Tuesday.
''There is a sense of disappointment after the yen failed to weaken much afterwards,'' said Tatsuo Kurokawa, deputy
general manager at Nomura Securities. |
