Japanese Stocks Decline as Yen Strengthens Ahead of Earnings

Japanese Stocks Decline as Yen Strengthens Ahead of Earnings

Bloomberg, (23/4) -- Japanese shares dropped, with the Nikkei 225 Stock Average falling from its highest since July 2008, as the yen gained against the dollar and investors await major earnings reports this week. The Nikkei 225 lost 0.3 percent to 13,529.65 at the close in Tokyo. The Topix Index lost 0.2 percent to 1,143.78, with about three stocks gaining for every two that fell on the 1,698-member index. “The yen is weakening at a slower pace, and there’s no catalyst for the Bank of Japan to ease further, which is what it would take to send the yen down,” said Ayako Sera, a market strategist in Tokyo at Sumitomo Mitsui Trust Bank Ltd., which manages about $163 billion. “Investors now need to see how the yen’s slide impacts earnings.” The yen rose and shares tied to China reversed gains after as report on the country’s manufacturing added to concern Asia’s largest economy is faltering. The preliminary reading for China’s Purchasing Managers’ Index released by HSBC Holdings Plc and Markit Economics compared was below the median estimate in a Bloomberg News survey of 11 analysts. The yen rose 0.5 percent to 98.75 against the dollar, reducing the outlook for Japanese exporters’ earnings when repatriated. Toyota Motor Corp., the world’s biggest carmaker, lost 0.7 percent. Honda Motor Co., which gets about 44 percent of its sales from North America, declined 1 percent. Sony slid 0.6 percent to 1,625 yen.