Japanese shares fall on profit-taking, yen’s rise
By DPA, IANSSunday, February 20, 2011
TOKYO - Japanese stocks declined in Monday morning trading as investors sold shares to lock in quick profits after recent gains and as exporters were hurt by the yen’s rise against the dollar.
The benchmark Nikkei 225 Stock Average lost 38.71 points, or 0.36 percent, to trade at 10,804.09 while the broader Topix index was down 2.72 points, or 0.28 percent, at 970.88.
The Nikkei climbed 2.24 percent last week to a nearly 10-month high as investors were optimistic about economic recovery after recent strong earnings reports from US and Japanese companies. The US is a major market for export-reliant Japan.
Investor sentiment was also hurt by unrest in the Middle East, Japanese media reported. More than 200 people had been reportedly killed over the past two days after protests turned violent Friday.
On currency markets at 9 a.m. (0000 GMT), the dollar traded at 83.10-12 yen, down from Friday’s 5 p.m. quote of 83.28-29 yen.
A stronger yen makes Japanese goods more expensive abroad and erodes repatriated earnings.
The euro traded at $1.3712-3714, up from $1.3593-3594 Thursday, and at 113.94-98 yen, up from 113.20-24 yen.
