TOKYO — Tokyo stocks closed mixed on Monday with analysts saying worries over political uncertainty in Greece was weighing on investor sentiment.
The Nikkei 225 index at the Tokyo Stock Exchange ended up 20.53 points at 8,973.84. The broader Topix index of all first-section issues lost 0.22%, or 1.70 points, to 756.68.
The headline index turned lower during the Monday session as a bump in purchases of China-related shares ran its course, analysts said.
The buying was spurred by the Chinese central bank’s announcement Saturday that it would cut the reserve requirement ratio for banks to boost liquidity and help inject some energy into a slowing economy.
With Japanese earnings season all but done, Tokyo stocks are not likely to see sharp spikes in either direction, analysts said.
“Prices likely won’t see a catapult forward, but things are now set for a slow grind forward,” said CLSA equity strategist Nicholas Smith.
Investors are wary of turmoil in Greece, where efforts to form a coalition government have so far failed, raising the prospect of new elections that could scupper austerity reforms and possibly force the country out of the eurozone.
Greek voters earlier this month punished ruling parties in a backlash against severe austerity measures in return for multi-billion-euro international loans.
“The lack of transparency, particularly in Europe, with the possibility of Greek re-elections in mid-June, is a worry that looks to remain with us for the time being,” said Monex market analyst Toshiyuki Kanayama.
“And that will keep the investor bias to the downside,” he said.
On currency markets Monday, the euro stood at $1.2888 and 103.10 yen in Asian trade, slipping from $1.2921 and 103.26 yen in New York on Friday.
The dollar was at 79.99 yen from 79.93 in New York.
source: japantoday.com
