Tokyo stocks close 1.95pc lower
October 23, 2013 - 9:18:53 am
TOKYO: Tokyo stocks fell 1.95 percent Wednesday, as the dollar dropped against the yen after weak US jobs data raised expectations that the Federal Reserve will keep its stimulus programme in place into next year.
The benchmark Nikkei 225 index lost 287.20 points to 14,426.05, giving up early gains, while the Topix index of all first-section shares was down 1.52 percent, or 18.46 points, to 1,195.98.
"It's not a cataclysmic fall, but after rising in nine of the last 10 sessions, the market was ripe for a sell-off, especially considering the expectations for a stronger jobs report," said Hiroyuki Fukunaga, CEO at Investrust.
The US Labor Department said Tuesday its non-farm payroll report delayed by more than two weeks due to the US government shutdown showed 148,000 jobs were added in September, below forecasts for a gain of 180,000.
On Wall Street the Dow rose 0.49 percent, the S&P 500 already at a record high tacked on 0.57 percent and the Nasdaq climbed 0.24 percent.
"Stocks held gains in the US, but as shares in Asia started falling, risk-averse trading spread," Akira Moroga, manager of forex products group at Aozora Bank, told Dow Jones Newswires.
Analysts said the jobs figures suggest the Fed will hold off winding down its bond-buying scheme until the economy shows stronger signs of improvement, weighing on the dollar.
The greenback sank to 97.38 yen in Tokyo afternoon trade, from 98.12 in New York Tuesday afternoon.
Major exporters turned down with Honda off 2.77 percent at 3,850 yen and Canon down 2.18 percent at 3,135 yen. (AFP)