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Asia stocks decline as yen strengthens; Nikkei sheds 0.22%

Published 10/28/2010, 04:10 AM
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Investing.com – Asian stocks were down on Thursday, as slumping commodity-linked shares led markets lower, while Japanese exporters came under renewed pressure as the yen advanced against the U.S. dollar.

During late Asian trade, Hong Kong's Hang Seng Index was down 0.10%, South Korea's Kospi Composite fell 0.09%, while Japan’s Nikkei 225 Index shed 0.22%.

Earlier in the day, the Bank of Japan kept its benchmark interest rate unchanged in a range of 0.0% to 0.1%, in line with expectations.

The Nikkei’s losses came as shares in the commodity sector led declines as oil and metal prices retreated. Shares in Japan’s biggest oil exporter Inpex tumbled 1.26%, miners Sumitomo Metal Mining saw shares fall 0.93% while shares in JX Holdings, which owns Japan’s top copper producer Pan Pacific Copper, declined 0.97%.     

Meanwhile, the continuing strength of the yen weighed on shares of Japanese exporters. Electronics giant Sony saw shares fall 1.09%, automaker Toyota dropped 1.00% and rivals Mitsubishi Motors saw shares tumble 3.00% after it lowered its second-half profit outlook, citing the stronger yen.

But losses were limited as digital camera maker Canon saw shares jump 3.73% after it raised its full-year net income forecast by 2.1%, citing “cost cuts and higher camera shipments”.

Elsewhere, Australia’s S&P/ASX 200 advanced 0.79%, as shares in the Australia & New Zealand Banking Group soared 2.87% after it said that second-half profits surged 69%, beating expectations.

Meanwhile, in Europe, equity markets were up after the open. The EURO STOXX 50 gained 0.32%, France’s CAC 40 climbed 0.39%, the FTSE 100 increased 0.69% and Germany's DAX was up 0.29%.

Later in the day, the U.S. was to release key weekly data on initial jobless claims.



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