Nikkei Corrects Slightly, Automotive Stocks a Weigh
Japanese stocks opened lower in trading this morning, after the benchmark Nikkei index surged sharply the day before and briefly set a new record. This time, profit-taking has slightly restrained market movements.
The Nikkei Stock Average fell around 0.3% to 52,363.15. This correction occurred shortly after the Nikkei hit a record high on Tuesday, so it's understandable that some investors chose to secure profits first.
The biggest pressure came from the automotive and property sectors. Honda Motor shares fell 2.4%, while Sumitomo Realty & Development fell 2.6%, becoming the two main pressures early in the session.
In the currency market, USD/JPY was at 156.74, slightly higher than 156.40 at the close of the Tokyo stock market on Tuesday. The yen's movement is also a concern as it could impact the performance of Japanese exporter shares.
Going forward, market players will be closely monitoring two key issues: the impact of China's export ban to Japan on goods with potential military uses, and the release of US economic data that could alter interest rate expectations and global sentiment. (asd)
Source: Bloomberg.com
