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Nikkei ends at 5-month low on continuing worries over global economy(Japan Economic Newswire Via Acquire Media NewsEdge) Tokyo stocks dropped Friday, with the Nikkei stock index ending at a nearly five-month low, as investor sentiment was cooled by continuing worries over the course of the global economy. The 225-issue Nikkei Stock Average ended down 205.87 points, or 1.40 percent, from Thursday at 14,532.51, its worst finish since May 23. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 18.28 points, or 1.53 percent, lower at 1,177.22. Buying took the upper hand at the outset of the morning, with some issues bought back after the Nikkei plunged 2.2 percent the previous day. After initial buying ran its course, however, the market lacked vigor and the key indexes fluctuated narrowly around the previous day's closing levels. "Market participants didn't dare to test higher ground, with buying on dips and buybacks dominating," said Hiroichi Nishi, assistant general manager of equity research at SMBC Nikko Securities Inc. The losses widened from the midmorning with the market "pressured by the prevailing uncertain outlook for the global economy due partly to fears over the Ebola virus," Nishi said. In the afternoon, the market remained directionless to end at the lowest levels in the day. It showed a slight rebound at one stage, supported by buying back by investors who had sold in the morning, said Yutaka Miura, a senior technical analyst at Mizuho Securities Co. "Market focus shifted to the United States. It is difficult for Japanese shares to rise before the U.S. stocks would stop declining," Miura added. Declining issues outnumbered advancing ones 1,468 to 259 on the First Section, while 106 closed unchanged. Decliners were led by pharmaceutical, rubber products and foods issues, while mining and marine transport gained footing. Fujifilm Holdings plunged 202.00 yen, or 5.9 percent, to 3,223.50 yen due to a pause in hunting for the company's stocks, after buying was spurred when an anti-influenza drug developed by its group firm Toyama Chemical Co. was given to a French female nurse infected with Ebola last month. Chemical machinery maker Tomoe Engineering tumbled 106 yen, or 5.9 percent, to 1,696 yen in response to the company's downward revision of its earnings estimate for the current business year through October, citing the growing possibility of an order cancellation in the Southeast Asian market. Bucking the weakness, Kansai Electric Power gained 26.80 yen, or 3.0 percent, to 912.20 yen a day after raising its consolidated net profit outlook for the April-September period to 3 billion yen from a loss of 29 billion yen due to cost-cutting efforts including reduction of power generation by relatively expensive oil. The Nikkei's heavyweight Softbank rose 48 yen, or 0.7 percent, to 6,828 yen on a news report that the Japanese telecom giant plans to invest in Snapdeal, India's largest online shopping site operator, acquiring a stake in excess of 30 percent. Trading volume on the main section totaled 2,754.99 million shares, down from 3,037.50 million shares on Thursday. (c) 2014 Kyodo News |