Banks and utilities lost further ground on worries about how
much cheap fashion wholesale 2011 they will have to contribute to help troubled nuclear
operator Tokyo Electric cheap fashion wholesale 2011 Power (Tepco) compensate
victims of the crisis at its tsunami-hit nuclear plant. The mood was also soured after Goldman Sachs downgraded its
recommendation on Japanese stocks to "underweight" from "market
weight", citing a weaker global macro backdrop, supply chain and
electricity supply problems after the March 11 earthquake as
well as a stronger yen. "We have entered a 'risk-off' stage in Tokyo. The earnings season is slowly coming to an end so traders are again
shifting their focus from micro factors like earnings to the
broader macro picture," said Makoto Kikuchi, chief executive
officer at Myojo Asset Management. The benchmark Nikkei average ended down for a third
straight day, losing 0.9 percent to 9,558.30, while the broader
Topix shed 1.2 percent to 829.55. Analysts said a decisive break below its closing
level may push the Nikkei to the bottom of its daily Ichimoku
cloud at 9,533,88, and if that level is then broken, it would be
a major bearish signal triggering more selling. "If overseas stocks slip again, the Nikkei may fall as low
as 9,300," he added. Market participants said risk factors for Tokyo stocks
included volatile commodities markets, a possible correction
ahead for U.S. stocks as the Federal Reserve ends its supportive
policy, and the fear of a worsening euro-zone debt crisis. Goldman Sachs lowered its 12 month target for TOPIX to 970
from 1,050 and said its Japan index targets imply 1 percent, 4
percent and 15 percent upside over 3, 6 and 12 months
respectively, compared to 8 percent, 13 percent and 25 percent
for Asian stocks outside Japan for the same periods. The Nikkei has tumbled more than 8 percent since the March
11 disasters, while Asian stocks outside Japan
have gained 5 percent over the last two months.
BANKS, UTILITIES EXTEND LOSSES Banks fell further after comments from the government's top
spokesman sparked concern on Friday that banks are likely to be
asked to ease troubled Tepco's cheap fashion wholesale 2011 loan burden. Although Japanese officials on Sunday denied the government
will ask banks to forgive loans to Tepco, investors still seemed
worried.[ID:nL4E7GF015] "The problem is that there seems to be a
difference of opinions on this issue inside the government. The
fact is that they don't seem to know what to do and that is
undermining investor confidence," said Masayuki Otani, chief
market analyst at Securities Japan Inc. "This uncertainty can keep a lid on bank stocks
for a longer while," Otani said. Mitsubishi UFJ Financial Group shed 1.6 percent to
377 yen and Sumitomo Mitsui Financial Group weakened
2.1 percent to 2,401 yen. SMFG also said on Friday it expects
core lending to remain sluggish this year.[ID:nL3E7GD29Y] Utility stocks extended losses into a third day after the
government approved on Friday a plan to help Tepco compensate
victims of the crisis at its tsunami-crippled nuclear plant and
said other utilities would be asked to pay annual premiums to
help fund compensation. Shares initially fell on Thursday in
anticipation of the move.[ID:nL3E7GD00T] Chubu Electric fell 4.5 percent to 1,417
yen and Tohoku Electric lost 5.4 percent to 1,060 yen. But surprisingly strong machinery orders data boosted shares
of construction companies cheap fashion wholesale 2011 and machinery makers on hopes that
reconstruction demand will bolster capital spending.
