💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Nikkei falls 1.5 pct as banking shares slip

Published 06/17/2009, 09:39 PM
Updated 06/17/2009, 09:50 PM
HMC
-
CAJPY
-
MFG
-

* Nikkei slips on profit-taking after last week's 8-mth high

* Yen hovers near 2-week high vs dlr, weighs on exporters

* Mitsubishi Estate up, says interested in buying REIT

By Masayuki Kitano

TOKYO, June 18 (Reuters) - Japan's Nikkei stock average fell 1.5 percent on Thursday, pulling away from last week's eight- month high, as investors booked profits due to uncertainty about the prospects for a further pick-up in the economy.

Big banks such as Mizuho Financial Group tracked their U.S. peers lower, while exporters such as Honda Motor Co slipped as the yen hovered near a two-week high versus the dollar.

Mitsubishi Estate bucked the trend, rising 1.2 percent to 1,579 yen after Japan's second-biggest developer told Reuters on Wednesday it is interested in buying a real estate investment trust (REIT) in Japan and is preparing to launch a property investment fund in the United States.

"It seems like a pull-back phase. People who want to take profits are starting to appear," said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments.

While there has been a recovery in factory production in Japan as inventory adjustments progressed, there are doubts about the outlook for final demand, Ogawa said.

Nevertheless, the Nikkei's retreat seems like a healthy move, given that its fall comes after the benchmark climbed above 10,000 last week, Ogawa said.

The Nikkei fell 149.44 points to 9,691.41. The Nikkei hit an eight-month closing high of 10,135.82 last Friday.

The broader Topix fell 1.4 percent to 909.84.

The dollar stood at 95.73 yen, after hitting a two-week low of 95.51 yen earlier this week.

That hurt exporters such as Honda, which fell 3.7 percent to 2,575 yen, while Canon Inc was down 2.5 percent to 3,120 yen.

Mizuho Financial Group slipped 2 percent to 246 yen, and Mitsubishi UFJ Financial Group fell 3.0 percent to 586 yen.

Market analysts say the Nikkei is likely to find support from the 25-day moving average that now lies near 9,600.

In U.S. trade, the Nasdaq rose slightly on the back of technology shares, while the Dow and S&P 500 both fell about 0.1 percent as U.S. bank shares took a hit from a debt ratings downgrade and uncertainty over Washington's extensive proposals for banking-industry reform. (Editing by Hugh Lawson)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.