Tokyo Shares Trade In Narrow Range

Tokyo shares trade in narrow range

TOKYO, Jan 5, (UrduPoint / Pakistan Point News - 05th Jan, 2017 ) - Tokyo shares traded in a tight range Thursday morning, following gains in New York overnight on continued optimism for global markets.

A stronger Yen against the Dollar "capped the initial rise," said Yoshihiro Ito, chief strategist at Okasan Securities, wrote on his market blog. The benchmark Nikkei 225 index, which opened higher, slipped 0.25 percent, or 49.46 points, to 19,544.70 by the lunch break.

The broader Topix index of all first-section issues added 0.04 percent, or 0.57 points, to 1,555.05. Wall Street opened the year with two straight days of gains and remains 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, which oversees about A$10 billion ($7.3 billion), 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, struggling auto parts maker Takata jumped 2.68 percent to 1,034 yen by the break, after surging more than 22 percent at one point earlier in the session. The company extended recent rallies after news it was close to settling a US criminal probe into an exploding airbag scandal.

Nintendo, meanwhile, was down 0.73 percent at 24,300 yen, while Sony was down 1.44 percent at 3,285 yen. Market heavyweight Fast Retailing declined 1.08 percent at 42,820 yen by the break. The dollar, meanwhile, fell as the Fed minutes highlighted concerns about the impact of a strong Currency on the new US administration's stimulatory economic policies.

In currencies, the greenback changed hands at 116.47 yen, down from 117.27 yen in New York late Wednesday.