adminTOKYO. – Japanese shares fell, paring yesterday’s surge in the Topix index, after US shares halted a four-day rally and consumer lenders declined with exporters.
Honda Motor Co, which gets about 84 percent of its revenue from outside Japan, was the biggest drag on the Topix. Orix Corp, a financial-services company, lost 3 percent. Nidec Corp sank 4,1 percent after the precision-motor maker reported earnings. Mitsui OSK Lines Ltd jumped 1,8 percent, extending yesterday’s surge, as shipping rates climbed.
The Topix lost 0,3 percent to 1 232,34 at the close in Tokyo, after rising as much as 0,2 percent and sliding 1 percent. Volume was 11 percent lower than the 30-day average. The measure has swung an average of 1,5 percent each day this month, almost double the average for the rest of the year. The Nikkei 225 Stock Average lost 0,4 percent to 15 138,96 yesterday, while the yen slid 0,1 percent to 107,23 per dollar.
“Volatility risk is quite high right now,” said Tomomi Yamashita, who helps oversee the equivalent of $6,3 billion at Shinkin Asset Management Co in Tokyo.
“It’s not like anything has changed in global fundamentals. Until we see more earnings results, investors are going to be sitting on the sidelines.”
Futures on the Standard & Poor’s 500 Index were little changed today. The underlying equity gauge dropped 0,7 percent yesterday, after a 4,2 percent advance the previous four days, as energy shares led losses amid a drop in oil prices.
Communication stocks and automakers posted the biggest drags on the Topix, while consumer lenders fell the most among the industry gauges. Honda dropped 1,4 percent to 3 365,5 yen. SoftBank Corp, Japan’s biggest mobile carrier by market value, slid 0,7 percent to 7 241 yen. – Bloomberg.
Peter Tanyanyiwa
Online Reporter