business tokyo stocks down, shanghai up in thin...

BU S INE S STUESDAY, DECEMBER 27, 2016

TOKYO: Tokyo stocks closed lower yester-day, though Shanghai gained and Seoulrose marginally in quiet trading with mostof the region’s other key markets closed forpublic holidays.

Incentives were few and the Dow JonesIndustrial Average, which on Friday again fellshort of 20,000 points in light trade ahead ofthe holiday weekend, provided little tailwind.

Investors in Japan cashed in on a recentglobal rally fuelled largely by expectations forthe incoming administration of US President-elect Donald Trump. Tokyo’s benchmark Nikkei225 index, which was closed on Friday for anational holiday, ended down 0.16 percent, or

31.03 points, to 19,396.64. The broader Topixindex of all first-section issues fell 0.37 percent,or 5.68 points, at 1,538.14.

“Selective shares are facing profit-taking fol-lowing the recent gains, as many investors areon the sidelines in a holiday mood, looking tofresh factors to trade,” said Shinichi Yamamoto,broker at Okasan Securities in Tokyo. Japan’sbanks remained under selling pressure on neg-ative news in the sector from overseas. Italy onFriday approved a state-funded rescue of theworld’s oldest bank,

Monte dei Paschi di Siena, while DeutscheBank and Credit Suisse agreed to pay a total ofalmost $12.5 billion to settle disputes over the

sale of mortgage-backed securities during theglobal financial crisis.

Japan’s MUFG dropped 1.22 percent whileits rival Sumitomo Mitsui Financial Group wasdown 0.84 percent.

“There are very few market participantsaround at the end of the year, and with someshort-term overbuying, Japanese stocks maykeep adjusting their levels,” Shoji Hirakawa,chief global strategist at Tokai Tokyo ResearchInstitute Co, told Bloomberg.

But N intendo was up 4 .06 percent to24,555 yen after the company’s president tolda Japanese newspaper it plans to release atleast three game apps for smartphones a year.

‘Honeymoon period’ Chinese stocks closed higher yesterday

after the market rebounded followinglosses earlier this month, dealers said. Thebenchmark Shanghai Composite Indexgained 0.40 percent, or 12.42 points, to3,122.57 on turnover of 170.6 billion yuan($24.6 billion).

And the Shenzhen Composite Index,which tracks stocks on China’s secondexchange, added 0.37 percent, or 7.31points, to 1,978.37 on turnover of 207.7billion yuan. Both indexes had finished themorning session lower before recoveringfor the day. Seoul rose slightly, ending up0.09 percent. Financial markets wereclosed in Hong Kong, Singapore, Sydney,

Kuala Lumpur, Wellington and Jakarta forpublic holidays. Currency markets werequiet. “The undercurrent is still a strongdollar, but there was an adjustment phasein the past few days after a surge onexpectations for Mr Trump,” Marito Ueda,senior dealer at FX Prime, told AFP.

Sentiment favouring a strong dollar “willlikely continue until Mr Trump actuallytakes office in January and maybe duringthe so-called ‘honeymoon period’, or 100initial days of his government, unless somegeopolitical risks emerge,” Ueda added. Thegreenback traded at 117.14 yen, down from117.31 yen on Friday in New York. The euro,meanwhile, rose slightly, trading at $1.0464from $1.0454 on Friday.

Tokyo stocks down, Shanghai up in thin trade

TOKYO: A man walks by an electronic stock board of a securities firm in Tokyo yester-day. Stock markets in Japan and China declined yesterday in light trading afterChristmas with most other Asian markets closed. — AP