Tokyo shares close mixed

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

Stocks close 0.78% lower

TOKYO — Tokyo shares closed 0.78% lower on Tuesday following losses on Wall Street stoked by political and economic uncertainty in Europe and softer Chinese manufacturing figures.

The Nikkei 225 index at the Tokyo Stock Exchange fell 74.13 points to close at 9,468.04. The broader Topix index of all first-section issues slipped 0.69%, or 5.60 points, to 803.94.

U.S. and European markets fell as Chinese factory output contracted for the sixth straight month, and in the 17-nation eurozone private-sector activity shrank the most in five months.

The Dutch government collapsed Monday after a breakdown on budget talks, a day after French President Nicolas Sarkozy lost a first-round presidential vote to Socialist Francois Hollande, both weighing on markets.

But weakness in the Japanese market would likely be limited ahead of central bank policy meetings in Washington and Tokyo and next week’s public holiday in Japan, said Tatsunori Kawai, chief strategist at kabu.com Securities.

“While many investors are clearly sidelined ahead of both U.S. Fed and BOJ (Bank of Japan) policy announcements (this week), the upcoming Golden Week holiday next week is also going to hold participation levels down for the time being,” he said.

Investors were also looking to Japanese corporate earnings, but markets had largely priced in concerns of soft profits, said Mattia Ciancaleoni, director of equity sales at Citigroup Global Markets Japan.

“Even if companies’ earnings guidance come in weaker-than-expected, markets could remain firm considering many players have hedged their positions with downside protection,” she told Dow Jones Newswires.

source: japantoday.com