Tokyo shares end lower on financial system jitters

Author: ABC

Tokyo shares ended lower Friday as worries over the global financial system lingered while investors digested signs of a possible pause in US monetary tightening. The benchmark Nikkei 225 index fell 0.13 percent, or 34.36 points, to 27,385.25, while the broader Topix index slid 0.10 percent, or 2.00 points, to 1,955.32.

The dollar stood at 130.26 yen, down from 130.86 yen in New York and levels around 132 earlier in the week.

While the Federal Reserve hiked its lending rate again this week, analysts said its accompanying statement signalled it may soon pause. Speculation that rates could be held pushed the yen higher and weighed on exporters, Daiwa Securities said. “Deep worries remain over the health of the global financial system and banks, brokerage houses and insurance shares continued to face selling pressure,” the brokerage added. IwaiCosmo Securities said “the market was stuck in a narrow range, just below (Thursday’s) close”. Toshiba jumped 4.20 percent to 4,390 yen after saying it would support a $15 billion takeover bid by a consortium led by investment fund Japan Industrial Partners. Nintendo lost 0.35 percent to 5,058 yen and heavily weighted Fast Retailing, which operates Uniqlo, fell 1.01 percent to 27,370 yen. Advantest, which makes semiconductor tests, gave up earlier gains and ended down 0.50 percent at 12,050 yen. Toyota lost 0.17 percent to 1,784 yen, Nissan fell 0.41 percent to 480.7 yen and Honda gave up 0.62 percent to 3,370 yen.

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