RTTN: Japanese Market Slips On Weak Wall Street Cues, China Data
(RTTNews) - The Japanese market ended Thursday's trading session in negative territory with moderate losses, in reaction to the weak cues from Wall Street where the major averages ended in negative territory amid heavy selling by traders. Better than expected economic data from China and fears of more tightening measures in the world's second largest economy as well as broad sell-off in neighboring Asian markets, including the Chinese market, impacted market sentiment.
The benchmark Nikkei 225 Index fell 119.79 points, or 1.1%, to 10,437.31 , while the broader Topix index of all First Section issues fell 9.68 points, or 1.0%, to 927.19.
On the economic front, final data released by the Cabinet Office in Japan revealed that the country's leading index rose to 100.6 in November from 97.7 in the previous month. But the readign for November was revised down from 101 earlier reported. Meanwhile, the coincident index came in at 102.4, up from the initial estimate of 102.1. The reading was 100.7 in the prior month. The lagging index was revised to 87.8 from 87.3 reported earlier.
A report released by the Japan Franchise Association revealed that convenience store sales rose at a faster pace of 3.3% annually in December, compared to 1.1% annual growth in the previous month. The report further noted that the number of convenience stores increased 1.7% in December compared to the same month in 2009. During the same period, the number of customers rose by 1.3%, the data revealed.
Light sweet crude oil futures for February delivery was trading at $90.72 a barrel in electronic trading, down $0.14 per barrel from previous close at $90.86 a barrel in New York on Wednesday.
Shares of large banks declined on weak Wall Street cues where Goldman Sachs delivered disappointing quarterly results in the previous session. Sumitomo Mitsui Financial declined 1.64%, Mitsubishi UFJ Financial shed 1.09%, Mizuho Financial fell 1.74% and Resona Holdings lost 1.25%.
Real estate related stocks ended weaker. Mitsui Fudosan fell 2.17%, Mitsubishi Estate lost 2.51%, Tokyu Land Corp. shed 2.25% and Heiwa Real Estate declined 1.49%.
Stocks of sea-transport related companies also ended weaker on concerns about recovery. Mitsui OSK Lines declined 0.71%, Kawasaki Kisen Kaisha Ltd plunged 2.34% and Nippon Yusen fell 1.58%.
In the U.S., stocks saw heavy selling on Wednesday, with traders cashing in on recent strength following the multi-year highs that were set in the previous session. The pullback also came on the heels of a much sharper than expected drop in housing starts. The major averages moved off their worst levels late in the session but still finished on the downside. While the Dow edged down by just 12.64 points or 0.1% to 11,825, the Nasdaq plummeted 40.49 points or 1.5% to 2,725 and the S&P 500 fell 13.10 points or 1% to 1,282.
