Tokyo Stocks Open Lower After BoJ Underwhelms
Fahad Shabbir (@FahadShabbir) Published August 01, 2016 | 12:28 PM
TOKYO, (UrduPoint / Pakistan Point News - 1st August, 2016) - Tokyo stocks opened sharply lower Monday as the Yen soared on weak US growth data and after the Bank of Japan disappointed markets with underwhelming tweaks to its stimulus programme. On Wall Street, US equities ended mostly in the black on Friday following strong earnings from major technology companies, despite weaker-than-expected quarterly growth figures from the world's top economy. Official US data estimated second quarter growth at an annual rate of 1.2 percent, far below the 2.6 percent anticipated by analysts. In forex markets, the soft GDP figures on Friday sent the Dollar tumbling against Japan's Currency, which is seen as a perceived safe-haven in times of uncertainty. But a strong yen is a minus for Japan's exporters, as it dents their overseas profits.
That, in turn, weighs on demand for their shares. "The stronger yen will weigh on Japanese stocks," Shoji Hirakawa, chief global strategist at Tokai Tokyo Research Center, told Bloomberg news. "It's negative for exporters' earnings." The greenback rose to 102.48 from 102.07 yen in New York, but was still down sharply from 103.58 yen in Tokyo earlier on Friday. In opening deals, the benchmark Nikkei 225 index slipped 0.
93 percent, or 153.96 points, to 16,415.31, following a small gain on Friday. The broader Topix index of all first-section shares lost 1.09 percent, or 14.44 points, to 1,308.30. The BoJ deflated investor spirits after it held off from expanding a massive bond-buying programme -- a cornerstone of its years-long battle against deflation. Japanese officials are under pressure as the fate of Prime Minister Shinzo Abe's bid to reignite the world's number three economy, dubbed Abenomics, looks increasingly gloomy. The Japanese central bank's plan is to double purchases of exchange-traded funds to about six trillion yen annually, and inflate a US dollar lending programme for Japanese firms doing business overseas. But the central bank opted to leave its 80 trillion yen annual bond-buying programme unchanged and also held off cutting interest rates deeper into negative territory. On Wall Street Friday, the broad-based S&P 500 and tech-rich Nasdaq both ended slightly higher, rising 0.2 and 0.1 percent, respectively, following robust earnings from tech giants Amazon and Google parent Alphabet.
But the Dow finished 0.1 percent lower.
Related Topics
Recent Stories
Selection committee dissolved over Pakistan women cricket team's poor performanc ..
Punjab CM Maryam Nawaz in police uniform at Chung police center
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 25 April 2024
Today Gold Rate in Pakistan 25 April 2024
Mired in crisis, Boeing reports another loss
Session Awarding Ceremony 2024 held at Cadet College Muzaffarabad
Austrian ski great Hirscher to make comeback under Dutch flag
Pakistan, Japan agrees to convene 'Economic Policy Dialogue'
FM Dar conveys deepest sympathy on torrential rains devastation in UAE
Spain PM Sanchez says weighing resignation after wife's graft probe
Tennis: ATP/WTA Madrid Open results - 1st update
Long-lost Klimt portrait auctioned off for 30 mn euros
More Stories From World
-
Blades of Paris landmark Moulin Rouge windmill collapse
9 minutes ago -
Car giants vie for EV crown at Beijing's Auto China show
19 minutes ago -
Blades of Paris landmark Moulin Rouge windmill collapse
28 minutes ago -
Advanced 5G base station launched in Mt. Qomolangma
29 minutes ago -
China committed to supporting Zimbabwe's innovation-driven development
39 minutes ago -
Myanmar to hold 59th gems emporium next month
1 hour ago
-
Digital economy contributes 8.4 pct to Philippine economy in 2023
1 hour ago -
China committed to supporting Zimbabwe's innovation-driven development
1 hour ago -
Starfish control program improving health of Australia's Great Barrier Reef: report
1 hour ago -
Pakistan calls for addressing development changes at a key UN meeting
1 hour ago -
Advanced 5G base station launched in Mt. Qomolangma
1 hour ago -
Cambodia on right track to achieving malaria-free goal by 2025: PM
1 hour ago