CORRECTED-Japan's Nikkei slips as yen gains on Italy's political uncertainties

  • Reuters
  • Stock Market News
CORRECTED-Japan's Nikkei slips as yen gains on Italy's political uncertainties

(Corrects company name in seventh paragraph)

By Shinichi Saoshiro

TOKYO, May 30 (Reuters) - Japan's Nikkei share average slipped on Tuesday, with the equity market feeling downward pressure from a stronger yen, which hurts big manufacturers' export revenues.

The Nikkei .N225 lost 0.5 percent to 19,487.71.

The yen advanced to a 12-day high, as investors sought safe havens due to fresh political uncertainty in Europe, where remarks by former Italian prime minister Matteo Renzi raised the possibility of an early election and more strains within the European Union.

"Equities are wary of the ongoing appreciation by the yen, and they are also being swayed by the latest headlines from Europe," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

"But while the market has reacted negatively to news from Italy, it is likely to gradually regain its footing as the possibility of the country leaving the European Union remains very low at the moment."

Biotechnology company Takara Bio Inc 4974.T rose as much as 2.35 percent after it announced that it started the first test of a Phase II clinical trial of HF10, which could be used for the treatment of cancer. Keiki Inc 7721.T was up 7.9 percent as its midterm business plan was greeted positively. The manufacturer of defence-related electronic equipment expects a significant increase in profits thanks to orders for components used by fighter jets and reconnaissance helicopters.

Shares of companies engaged in child education gained on reports that making early education free of charge was a measure the Japanese government was looking to include in its latest economic and fiscal management plan draft.

Kindergarten operator JP-Holdings Inc 2749.T rose 5 percent, educational guidance service provider Kyoshin Co 4735.T climbed 13 percent and child education instructor Youji Corp 2152.T added 2.5 percent.

Takemoto Yohki Co 4248.T dropped as much as 4.2 percent on share dilution concerns. The manufacturer and distributor of plastic packaging containers will issue 500,000 shares of its common stock via a public offering and another 82,000 shares to a third party via a private placement.

The broader Topix .TOPX slipped 0.4 percent to 1,564.09 and the JPX-Nikkei Index 400 .JPXNK400 was also 0.4 percent lower, at 13,943.06. (Editing by Simon Cameron-Moore)

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