Japan’s topix swings as yen weakens, Hong Kong protests worsen
By Bloomberg
Japan's Topix index swung between gains and losses as the yen touched a six-year low, U.S. consumer confidence declined and Hong Kong braced for bigger protests as holidays started.
Asahi Kasei Corp. jumped 2 percent after Jefferies Group LLC upgraded the chemical manufacturer's shares. Toyota Motor Corp., the world's biggest carmaker by market value, gained 1.2 percent. Seafood producer Nippon Suisan Kaisha Ltd. added 3.1 percent as agricultural companies led gains on the Topix. Japan Drilling Co. sank 1.6 percent as oil explorers fell. Ibiden Co. plunged 15 percent after cutting its full-year profit forecast. Minebea Co. sank 3.7 percent as SMBC Nikko Securities Inc. lowered its rating on the ball-bearings maker.
The Topix slipped 0.1 percent to 1,324.59 as of 1:32 p.m. in Tokyo, swinging between gains of 0.3 percent and losses of 0.5 percent. The measure rose 3.8 percent last month and posted a 5.1 percent gain for the quarter. The Nikkei 225 Stock Average fell 0.1 percent to 16,151.14 today. The yen lost 0.3 percent to 109.92 per dollar after briefly touching 110.09, the weakest since August 2008.
"The stock market is moving as it keeps a close watch on the yen," said Ayako Sera, a Tokyo-based market strategist at Sumitomo Mitsui Trust Bank Ltd., which oversees about $474 billion in assets. "However, the protests in Hong Kong and the concerns about the global economy are weighing on the market."
Tankan Survey
Japan's quarterly Tankan index for large manufacturers rose to 13 from 12 in June, the Bank of Japan said today, beating the median estimate of economists for a reading of 10. A positive number means optimists outnumber pessimists. Companies in the survey indicated they may raise capital expenditure 8.6 percent in the year through March.
Futures on the Standard & Poor's 500 Index fell 0.1 percent today. The U.S. measure lost 0.3 percent yesterday as small-cap and energy shares slumped amid the unexpected decline in consumer confidence.
Confidence among consumers fell to a four-month low in September as Americans' views of the labor market deteriorated. The Conference Board's sentiment index decreased to 86 last month, weaker than the most pessimistic forecast in a Bloomberg survey of economists, from an August reading of 93.4 that was the strongest since October 2007.
"We expect the dollar to continue to be strong, and there's no change in high hopes for upward momentum on exporters' earnings," said Hiroichi Nishi, an equities manager at SMBC Nikko Securities Inc. in Tokyo.
In Hong Kong, the city's Chief Executive Leung Chun-ying was jeered by pro-democracy demonstrators at a ceremony to hoist the Chinese flag as the city entered the sixth day of protests seeking free elections.
Leung arrived by boat at Golden Bauhinia Square to mark the 65th anniversary of the founding of the People's Republic of China. The site is near the main protests in Admiralty, where organizers estimated more than 100,000 people gathered last night to demand Leung step aside and China drop plans to vet candidates in a leadership election planned for 2017.