Japanese stocks swung between gains
and losses as exporters were boosted by a weaker yen while
automakers slumped amid an escalating political dispute between
Japan and China, the world’s biggest car market.
Canon Inc. (7751), a camera maker that gets almost 60 percent of
its sales in the U.S. and Europe, gained 1.4 percent. Toyota
Motor Corp. slid after carmakers’ operations in China were
damaged by widespread protests. Sony Corp. climbed 3.6 percent
on a report the nation’s biggest consumer-electronics exporter
is in final talks to invest in Olympus Corp.
“Optimistic views toward the currency are emerging because
the yen didn’t strengthen after the Federal Reserve announced a
third round of quantitative easing,” said Koji Toda, chief fund
manager at Resona Bank Ltd. in Tokyo, which oversees about 15
trillion yen ($191 billion). “There is concern that anti-
Japanese protests may reduce investment into China in the mid
and long term. The situation is uncertain and we don’t know how
long it will last.”
The Nikkei 225 Stock Average (NKY) was little changed at 9,162.03
as of 10:37 a.m. in Tokyo, with volume almost 40 percent above
the 30-day average after a three-day weekend. The broader Topix (TPX)
Index climbed 0.4 percent to 759.97 after falling as much as 0.2
percent earlier today.
The Topix has rebounded 9.3 percent from this year’s low on
June 4 as central banks step up measures to promote global
economic growth. The price of shares on the gauge stood at 0.9
times book value, compared with 2.3 times for the Standard &
Poor’s 500 Index and 1.5 times for the Europe Stoxx 600 Index. A
number less than one means that companies can be bought for less
than the value of their assets.
Futures on the S&P 500 were little changed today. The gauge
fell 0.3 percent yesterday after manufacturing in the New York
region contracted more than forecast as orders shrank.
Yen Weakens
The yen depreciated to as low as 78.93 against the dollar
last night in Tokyo, compared with 77.57 at the close of stock
trading on Sept. 14. Japan’s currency weakened to 103.86 against
the euro, the lowest since May 9, from 101.13. A weaker yen
boosts overseas income at Japanese companies when repatriated.
Shares of Japanese companies operating in China declined as
the worst diplomatic crisis since 2005 between the two nations
is putting at risk a trade relationship that’s tripled in the
past decade to more than $340 billion.
Toyota Motor (7203), Honda Motor Co. and Panasonic Corp. reported
damage to their operations in China as thousands of people
marched in more than a dozen cities on Sept. 16 after Japan last
week said it will purchase islands claimed by both countries.
Protesters called for boycotts of Japanese goods and in some
cases smashed store fronts and cars.
“Carmakers are supposed to be rising the most today, but
concerns about various anti-Japanese movements are dragging them
down even though the yen is weakening,” Resona Bank’s Toda said.
To contact the reporters on this story:
Norie Kuboyama in Tokyo at
nkuboyama@bloomberg.net;
Adam Haigh in Sydney at
ahaigh1@bloomberg.net
To contact the editor responsible for this story:
Nick Gentle at
ngentle2@bloomberg.net
Source Article from http://www.bloomberg.com/news/2012-09-18/japan-stocks-swing-from-gains-losses-on-stimulus-china.html
