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Japan Stocks drift in lackluster trading

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Capital Market
Last Updated : Jul 09 2019 | 9:50 AM IST
Headline indices of the Japan share market were mixed on Tuesday, 09 July 2019, as risk sentiments muted ahead of key testimony this week from Federal Reserve Chairman Jerome Powell for more cues on possible rate cuts by the end of July. However, market losses were limited as the yen's retreat against the U.S. dollar gave exporter issues a boost, with investors also buying back issues after recent declines. Around afternoon trade, the 225-issue Nikkei Stock Average was up 0.04%, or 8.91 points, to 21,543.26, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange shed 0.24%, or 3.85 points, at 1,574.55.

Nearly two-third of 33 subsectors of the Topix's index declined, with Marine Transportation, Textiles & Apparels, Iron & Steel, Machinery, Glass & Ceramics Products, and Electric Appliances issues being notable losers, while Oil & Coal Products, Fishery, Agriculture & Forestry, and Foods issues were notable gainers.

Shares of Apple suppliers are weak following a notable drop by shares of the tech giant on Monday after a brokerage downgrade. Apple suppliers followed in its footsteps, with Murata Manufacturing falling 1.5% and Taiyo Yuden down 2.4% and TDK Corp off 1%. Nidec declined 0.9%. Alps Alpine dropped 1.4%.

Exporters stocks inclined on the back of yen depreciation gains greenback. The yen slipped to 108.85 yen per dollar from around 108.30 on Monday. Honda Motor rose 0.4%.

ECONOMIC NEWS: The Bank of Japan said that the M2 money stock in Japan was up 2.3% on year in June, coming in at 1,029.6 trillion yen. That was shy of expectations for a gain of 2.6%, which would have been unchanged from the May reading following a downward revision from 2.7%. The M3 money stock was up an annual 2% to 1,362.4 trillion yen - again missing forecasts for 2.3%, which also would have been unchanged from the previous month.

CURRENCY NEWS: Japanese yen, often seen as a safe-haven currency, depreciated against greenback on Tuesday, after strong US jobs growth in June virtually wipes out chances for a half point Fed rate cut at the end of July, but modest wage gains and other data showing the world's largest economy was losing steam could still encourage the central bank to cut rates by 25 basis points. The dollar was quoted at 108.73-74 yen compared with 108.68-78 yen in New York and 108.34-35 yen on Monday in Tokyo. The euro, meanwhile, fetched 121.94-98 yen against 121.86-96 yen in New York and 121.68-72 yen in late Monday trade in Tokyo.

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First Published: Jul 09 2019 | 9:25 AM IST

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