Nikkei slips 0.3pc as brokerages drop
Thursday, 21 January 2010
TOKYO, Jan 20 (Reuters): Japan's Nikkei average fell 0.3 per cent Wednesday as Nomura Holdings and other securities firms slid after a brokerage downgrade, while investors held back as the earnings season approaches.
Japan Tobacco slid 4.1 per cent after Norway said it had dropped the firm and other tobacco companies from its $450 billion wealth fund for ethical reasons.
Worries that China may be moving toward slower growth weighed on investor confidence, market players said, after news that China's central bank has ordered at least two lenders to increase their reserves.
Investors were cautious after consensus-beating results last week from US tech firm Intel Corp failed to excite the market, said Tomomi Yamashita, senior fund manager at Shinkin Asset Management.
"There are concerns that stocks might fall after earnings run their course, as Intel failed to gain after its results," he said.
"China's bank news might have also affected investor confidence as it indicates the country is moving toward tightening policy, though it's hard to think the move would directly work to dampen an economic recovery at this moment."
The benchmark Nikkei shed 27.38 points to 10,737.52, after eking out small gains in earlier trade.
The broader Topix retreated 0.5 per cent to 944.72.
Investors are waiting for US earnings reports due out later in the day, including from Bank of America and Morgan Stanley.
Japan Tobacco slid 4.1 per cent after Norway said it had dropped the firm and other tobacco companies from its $450 billion wealth fund for ethical reasons.
Worries that China may be moving toward slower growth weighed on investor confidence, market players said, after news that China's central bank has ordered at least two lenders to increase their reserves.
Investors were cautious after consensus-beating results last week from US tech firm Intel Corp failed to excite the market, said Tomomi Yamashita, senior fund manager at Shinkin Asset Management.
"There are concerns that stocks might fall after earnings run their course, as Intel failed to gain after its results," he said.
"China's bank news might have also affected investor confidence as it indicates the country is moving toward tightening policy, though it's hard to think the move would directly work to dampen an economic recovery at this moment."
The benchmark Nikkei shed 27.38 points to 10,737.52, after eking out small gains in earlier trade.
The broader Topix retreated 0.5 per cent to 944.72.
Investors are waiting for US earnings reports due out later in the day, including from Bank of America and Morgan Stanley.