News Column

Japanese Market Trades Weak On Wall Street Lead, Iraq Worries

June 24, 2014



TOKYO (dpa-AFX) - The Japanese stock market is trading lower on Wednesday, with the overnight weak close on Wall Street and the escalating violence in Iraq hurting sentiment.

The benchmark Nikkei 225 index is down 61.2 points or 0.4 percent at 15,315.0 after declining to 15,268.0 earlier.

Pioneer Corp. is declining 3.5 percent. Chiyoda Corp., TDK Corp., Amada Co., Nippon Paper Industries, Nippon Electric Glass, Kyocera Corp., Minebea Co. and Dai-ichi Life Insurance are lower by 1.5 to 2.3 percent.

Furukawa, Tokyo Electron, Alps Electric, Komatsu, Marui Group, Nippon Suisan Kaisha, Isuzu Motors, Softbank Corp. and Mitsui Mining & Smelting are also notably lower. Among the gainers, Sumitomo Metal Mining is moving up 2.3 percent and Nitto Denko is rising 2.1 percent.

Sumitomo Dainippon Pharma, Takara Holdings, Mitsui Chemicals, Nippon Sheet Glass, Tosoh Corp., Toshiba Corp., Daiwa Securities Group, Suzuki Motor, Sharp Corp. and Nippon Telegraph & Telephone Corp. are advancing 0.8 to 2 percent.

Marubeni Corp. shares are up marginally. The company announced that it will partner with a public-private investment fund for purchasing Portugal's largest waterworks business.

On the economic front, an index measuring corporate service prices in Japan was up 3.6 percent on year in May, the Bank of Japan said on Wednesday, standing at 102.5. That topped forecasts for an increase of 3.2 percent following the 3.4 percent increase in April.

On a monthly basis, prices added 0.2 percent after surging 2.6 percent in April.

In the currency market, the U.S. dollar traded near 102 yen in early deals in Tokyo. The yen is currently trading at 101.91 a dollar, against Tuesday's close of 101.96 yen per dollar.

Among other markets in the Asia-Pacific region, Australia, Shanghai and South Korea are notably lower, while Hong Kong, Singapore, Taiwan, New Zealand and Malaysia are down marginally.

On Wall Street, stocks ended notably lower on Tuesday, as worries about the situation in Iraq overshadowed a pair of much better than expected U.S. economic reports that included the data from the Commerce Department showing that new home sales jumped to a six-year high in May.

The Dow slid 119.1 points or 0.7 percent to 16,818.1, the Nasdaq dropped 18.3 points or 0.4 percent to 4,350.4 and the S&P 500 declined 12.6 points or 0.6 percent to 1,950.0.

Major European markets ended mixed on Tuesday. While the U.K.'sFTSE 100 index edged down by 0.2 percent, the German DAX index and the French CAC 40 index crept up by 0.2 percent and 0.1 percent, respectively.

U.S. crude oil ended lower on Tuesday, ahead of the weekly oil inventory status from the U.S. Energy Information Administration tomorrow and over the ongoing crisis in Iraq with Secretary of State John Kerry continuing with his efforts in Baghdad to chalk out a deal to tackle the ISIS menace.

Crude oil futures for August ended down $0.14 or 0.1 percent at $106.03 a barrel on the New York Mercantile Exchange, after scaling a high of $106.46 a barrel intraday.


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Source: dpa-AFX International Compact


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