Nikkei in Japan Suffers 3% Weekly Loss, Diet in Special Session

Hiruki Nakamura
03 Oct, 2014
New York City

Market indexes in Tokyo extended weekly losses as the Diet in meet for a special session and budget committee convene today. Nikkei average declined every day of the week and the yen remained under pressure as the government struggles to revive economic growth. Fast Retailing surges nearly 3%.

[R]4:30 PM Tokyo – Market indexes in Tokyo extended weekly losses as the Diet in meet for a special session and budget committee convene today. Nikkei average declined every day of the week and the yen remained under pressure as the government struggles to revive economic growth. Fast Retailing surges nearly 3% after sales at stores soared 20% in September.[/R]

Market indexes rebounded at a close on a rally in final ten minutes of trading but market sentiment remained week for stocks.

Diet in Japan convened in a special session this week and the budget committee started meeting today that may lead to more clarity on the government policy on infrastructure spending.

Nikkei 225 Stock Average increased 0.3% to 15,708.65 and lost 3.2% in the week. The index declined every day of the week.

Topix gained 0.2% to 1,282.54 and declined 3.7% in the week, the largest fall in nearly two months.

The yen eased 0.5% after adding more than 1% in the previous two sessions and closed at 108.99.

Tokyo Movers

Fast Retailing increased 2.8% to 37,370 yen after sales at Uniqlo stores soared 20% in September from a year ago on cooler than normal weather.

Mitsubishi UFJ increased 0.4% to 601.9 yen and Sumitomo Mitsui declined 0.3% to 4,380 yen. Mizuho Financial added 0.3% to 194.10 yen.

Change in broker views led to the decline in Honda and Eisai.

Honda Motor Co declined 1.4% to 3,538.50 after UBS lowered its view on the stock to ‘neutral’ from ‘buy.’

Eisai Co., Ltd decreased 1% to 4,295.50 after Nomura lowered its view on the stock to ‘neutral’ from ‘buy.’