Tokyo stocks closed lower Thursday with technology companies down despite a strong lead from Wall Street after the Dow marked its sixth straight record close. The US blue-chip index on Wednesday ended above 22,000 points for the first time following another round of strong earnings that have overshadowed the lack of progress on President Donald Trump's economic agenda.
But investors in Tokyo were underwhelmed by the Dow's rise, as the tech-heavy Nasdaq closed marginally lower at 6,362.65. "It is true that the Dow hit another record but you should (watch) the lacklustre Nasdaq," Toshihiko Matsuno, chief strategist at SMBC Friend Securities told AFP.
Tokyo's benchmark Nikkei 225 index slipped 0.25 percent, or 50.78 points, to 20,029.26, while the Topix index of all first-section issues was off a marginal 0.03 percent, or 0.56 points, at 1,633.82. Tokyo Electron, a microchip-testing device maker and market heavyweight, fell 2.37 percent to 15,205 yen.
But some Japanese companies which announced profits this week were up. Airline ANA, which reported strong earnings on Wednesday, jumped 5.43 percent to 409 yen. Investors were awaiting more company results as the earnings season peaks. "Overall, Japanese companies have been reporting robust earnings," as have US companies, said Hitoshi Asaoka, a strategist at Asset Management One.
"But for the profit forecasts to see another round of upgrades, the yen will have to be weaker against the dollar. Otherwise, stock prices of exporters will be capped," he told Bloomberg News. Toyota, which will report quarterly earnings on Friday, fell 1.19 percent to 6,225 yen. Market reactions were muted as beleaguered Japanese Prime Minister Shinzo Abe announced a new cabinet, dumping arch-conservatives and embracing critical voices.
"The most important point is whether this will lead to a recovery in public support," SMBC Nikko Securities economists said in a note. "If support rates continue to struggle, adverse winds (for Abe) will intensify," they said. In currency trading, the dollar edged down to 110.64 yen on Thursday against 110.72 yen in New York Wednesday afternoon.
Comments
Comments are closed.