Tokyo Shares Finish Flat On Yen Strength


Tokyo shares finish flat on yen strength

TOKYO, Jan 5, (UrduPoint / Pakistan Point News - 05th Jan, 2017 ) - Tokyo shares closed flat on Thursday with the benchmark index losing early gains as Japan's Currency strengthened against the dollar.

A stronger Yen "capped the initial rise," said Yoshihiro Ito, chief strategist at Okasan Securities, wrote on his market blog. The benchmark Nikkei 225 index lost 0.37 percent, or 73.47 points, to 19,520.69.

But the broader Topix index of all first-section issues rose 0.08 percent, or 1.20 points, to 1,555.68. The Nikkei opened higher after Wall Street scored gains for the second straight day this year and remaining within striking distance of the 20,000 point milestone.

US central bankers hinted they may need to raise interest rates faster than planned due to "considerable uncertainty" linked to US President-elect Donald Trump's fiscal stimulus plans, which could fan inflation, according to minutes of the final 2016 policy meeting in December at which the US central bank lifted rates.

"The Fed are saying overall the economy doesn't look too bad and they are going to continue to keep a foot on the pedal in terms of interest-rate moves," Karl Goody, a private wealth manager at Shaw and Partners Ltd.

in Sydney told Bloomberg News. "As long as you see positive numbers coming through on the economy, you're not going to see a change in rhetoric from the Fed," he said. In Tokyo, shares in struggling auto parts maker Takata dipped following a surge on news last week of an expected settlement over a US criminal probe into exploding airbags.

Takata fell 1.19 percent to close at 995 yen as investors cashed in after it soared 22.44 percent at one point in the session. That marked a more than 100-percent rise since December 28 when the shares started climbing on hopes of a resolution.

Nintendo, meanwhile, was down 1.61 percent at 24,085 yen, while Sony fell 1.11 percent at 3,296 yen. Market heavyweight Fast Retailing declined 1.61 percent at 42,590 yen. The Dollar, meanwhile, fell as the Fed minutes highlighted concerns about the impact of a strong currency on the new US administration's expected stimulatory economic policies.

The greenback changed hands at 115.89 yen, down from 117.27 yen in New York late Wednesday. A stronger yen hurts the profitability of Japan's major exporters, hitting demand for their shares.