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LEAD: Tokyo stocks fall on overheating market, but optimism limits losses+(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, June 15_(Kyodo) _ (EDS: ADDING DETAILS AND PRICES) Tokyo stocks fell Monday as investors sold for gains after the Nikkei index topped the 10,000 line last week, although losses were limited as sentiment remains upbeat on hopes for a global economic recovery. The 225-issue Nikkei Stock Average dropped 96.15 points, or 0.95 percent, to 10,039.67 from Friday, when it ended above the 10,000 line for the first time in eight months. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 3.72 points, or 0.39 percent, to 946.82 despite starting in positive territory. Precision machinery, banking and insurance issues led the decline. Gainers included consumer finance, real estate, and fishery and forestry issues. "The Nikkei has gained 44 percent in three months since its March 10 low," said Hiroichi Nishi, equity division general manager at Nikko Cordial Securities Inc. "We're seeing an overheating market." Amid a lack of domestic trading cues, declines in Hong Kong and other Asian markets and bearish sentiment on the U.S. stock futures market added fuel to the rush to sell for profits, brokers said. Blue-chips such as auto and electronics makers took a blow, but brokers said the overall market remained resilient on the downside with support around the Nikkei's 10,000 line from dip-buying. "Investors are taking a breather, but momentum to buy on the dip remains strong," Nishi said, adding that sustained optimism was reflected by solid rises on the TSE's Second Section and start-up markets. On the First Section, advancing issues outnumbered declining issues 1,014 to 582, with 109 others remaining unchanged. The Tokyo market moved in a narrow range throughout the day as investors await U.S. housing and other economic indicators later this week for more evidence to support recovery hopes after the Group of Eight finance ministers noted Saturday "signs of stabilization in our economies." "Investors want to see first how the housing data are affected after recent hikes in oil prices and long-term interest rates, so it's difficult to make big moves right now," said Yukio Takahashi, a market analyst at Mizuho Securities Co. He added that depending on the results U.S. data, the Nikkei may dip into the 9,900 range briefly this week but is unlikely to nosedive beyond that. Among a string of key U.S. data due out this week are housing starts as well as producer and consumer price indexes for May. Value leader Sumitomo Mitsui Financial Group lost 300 yen, or almost 7 percent, to 4,050 yen after weekend reports that its common stock issuance this month may be larger than previously announced, fanning fears of share value dilution. Volume leader Mizuho Financial Group fell 8 yen, or about 3 percent, to 260 yen. Metal and oil-related issues slumped after commodity and crude prices fell. Japan Petroleum Exploration shed almost 2 percent, while trading house Mitsui slid 47 yen, or over 3 percent, to 1,261 yen. Tech issues tracked losses among their U.S. peers, with semiconductor maker Tokyo Electron down 270 yen, or over 5 percent, to 4,690 yen. On the bright side, real estate and construction issues were lifted by hopes that government economic stimulus measures will spur recovery in demand. Sumitomo Realty & Development was up 114 yen, or about 7 percent, to 1,792 yen, while Tokyu Land climbed almost 6 percent. Japan Tobacco jumped over 7 percent, or 22,000 yen, to 325,000 yen after the cigarette maker said Friday it has agreed with Tribac Leaf Ltd. to acquire parts of the British company's operations. Trading volume on the main section came to 2,497.02 million shares, down from Friday's 3,997.46 million, which was exceptionally high partly due to trade after settlement of Nikkei futures contracts that day. The TSE's Second Section index was up 20.51 points, or 0.95 percent, to 2,188.00 on a volume of 76.49 million shares. On the Osaka Securities Exchange, the near-term September Nikkei 225 index futures contract was down 100 points to 10,040. (c) 2009 Kyodo News International, Inc. |