Nikkei down 0.2% as Casio drags

Nikkei down 0.2% as Casio drags
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First Published: Fri, Oct 05 2007. 10 01 AM IST
Updated: Fri, Oct 05 2007. 10 01 AM IST
Tokyo, 5 October The Nikkei average eased 0.2% today, dragged lower by Casio Computer Co Ltd after it cut its full-year forecast, but received some support from KDDI Corp which jumped after a brokerage upgraded the stock and put it on its conviction buy list.
Shares of Simplex Investments Advisors Inc soared 10.8% to 144,000 yen on the Tokyo exchange’s Mothers section for start-ups. Sources told Reuters a major shareholder in the property investment company had put his 29% stake up for sale, a move that could lead to a tender offer for the rest of the company.
“Investors are finding it tough to aggressively buy stocks in light of downward revisions of corporate earnings,” said Yutaka Miura, deputy manager of the equity information department at Shinko Securities.
“But the market will likely trade in a narrow range as investors wait for US jobs data. Japanese stocks have not been rising on domestic factors but on US stocks.”
Investors are waiting for the US jobs report today as that could shed light on the outlook for interest rates there.
The benchmark Nikkei ended the morning session down 28.70 points at 17,063.79. The broader TOPIX index inched higher 0.1% or 1.29 points to 1,656.89.
Trade volume was low, with 721 million shares changing hands on the Tokyo exchange’s first section, compared with last week’s morning average of 876.2 million.
Advancing stocks outnumbered declining ones by 878 to 680.
Asian shares fell the previous day, partly dented by chip makers after a negative report on Intel Corp.
Among stocks that gained, KDDI climbed 2.7% to 868,000 yen after Goldman Sachs lifted a rating on Japan’s No. 2 mobile phone operator to “buy” from “neutral” and lifted the target price to 1.02 million yen from 950,000 yen, saying no “domino” price cuts are expected.
Shares of Sony Corp added 0.9% to 5,810 yen, bucking a decline in other technology shares, on robust sales of its handheld game player in Japan.
Shares of Osaka Securities Exchange jumped 6.6% to 595,000 yen after the exchange said it would list an exchange-traded fund (ETF) that tracks the SSE 50 index of major issues traded on the Shanghai Stock Exchange, making it the first ETF linked to an overseas index to be listed on a domestic bourse. The ETF will be listed on 23 October.
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First Published: Fri, Oct 05 2007. 10 01 AM IST