Japan stocks fall as yen resumes rise against dollar
By DPA, IANSThursday, October 28, 2010
TOKYO - Shares in Tokyo fell in early Friday trading as the yen resumed its rise against the dollar, and some companies reported disappointing figures.
The benchmark Nikkei 225 Stock Average lost 159.42 points, or 1.7 percent, to trade at 9206.61 while the broader Topix index was down 9.11 points, or 1.12 percent, at 805.22.
The move came as Japan reported a fall in industrial production and in consumer prices in September.
Several leading companies cut their profit outlook for the year, financial news service Bloomberg reported, including industrial ceramic producer NGK Insulators Ltd, the world’s leading maker of memory-chip testers Advantest Corp, and Japan’s largest manufacturer of liquid crystal displays Sharp Corp.
On currency markets at 9 a.m. (0000 GMT), the dollar traded at 80.94-99 yen, down from Thursday’s 5 p.m. quote of 81.34-35 yen. The euro traded at $1.3942-3943, up from 1.3814-3815 Wednesday and 112.85-86 yen, up from 112.37-41 yen.
A stronger yen has a negative impact on Japanese exporters as it makes exports less competitive and erodes overseas earnings when revenues are repatriated.
