Nikkei rebounds as weak yen offsets earnings worries

Published 08-02-2016, 10:59 am
Updated 08-02-2016, 11:00 am
Nikkei rebounds as weak yen offsets earnings worries

By Ayai Tomisawa

TOKYO, Feb 8 (Reuters) - Japan's Nikkei share average rebounded on Monday, crawling back from an early two-week low as a weak yen offset concerns about weak Japanese companies' earnings and slumping U.S. stocks.

The Nikkei .N225 was up 1.4 percent at 17,057.53 points by mid-afternoon after falling as low as 16,552.30 in morning trade, the lowest since Jan. 22.

The market turned positive after the dollar rose above 117 yen.

"Investors are seen unwinding their buy-yen, sell-stocks positions which were persistent in the past few days," said Yutaka Miura, a senior technical analyst at Mizuho Securities.

Investors remained on edge after U.S. stocks fell on Friday, while mixed U.S. jobs data failed to provide clues on the Federal Reserve's policy outlook.

On Friday, U.S. employment gains slowed more than expected in January as the boost to hiring from unseasonably mild weather faded, but rising wages and an unemployment rate at an eight-year low suggested the labor market recovery remains firm. turned higher, with Honda Motor Co 7267.T rising 0.3 percent and Nissan Motor Co 7201.T adding 0.7 percent.

Toyota Motor Corp 7203.T trimmed its earlier losses but stayed weak, falling 0.6 percent after reporting tepid earnings for the third quarter.

"While worries about a global economic slowdown still linger, investors are favoring defensive stocks with high dividend yields," said Chihiro Ohta, general manager at investment research and investor services at SMBC Nikko Securities.

Such stocks include NTT Corp 9432.T and NTT Docomo 9437.T , which rose 2.9 percent and 2.4 percent, respectively.

The broader Topix .TOPX gained 1.2 percent to 1,385.33 and the JPX-Nikkei Index 400 .JPXNK400 added 1.1 percent to 12,499.71. (Editing by Kim Coghill)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.