Japanese shares mixed by noon in choppy trade
TOKYO – Japanese share prices were mixed Monday in choppy trade amid speculation Tokyo was preparing to intervene in currency markets after the yen hit a fresh post-war high against the dollar last week.
The headline index at the Tokyo Stock Exchange moved in and out of positive territory after opening lower and closed the morning session 16.33 points higher, or up 0.19 percent, to 8,735.57.
The Topix index of all first-section shares fell 0.12 percent or 0.91 points to 750.78.
Investors closely watched the yen’s movement against the dollar, as the safe-haven unit’s strength, seen as a reflection of weak global risk appetite, encouraged selling of exporters whose repatriated profits are eroded by a strong domestic unit.
The dollar on Friday fell to a post-war low against the yen of 75.95.
But a stronger greenback, quoted at 76.80 yen about 0200 GMT compared with 76.50 yen late Friday in New York, provided better support for stocks on Monday, said Yutaka Miura, senior technical analyst at Mizuho Securities.
“It’s a tug-of-war between caution and expectations for a global equity rebound later in the week,” Miura told Dow Jones Newswires, noting that markets were anticipating US Fed Chairman Ben Bernanke’s speech scheduled on Friday.
TDK was up 0.76 percent at 3,275 yen, with Olympus up 2.15 percent at 2,185.
But Toyota Motor lost 1.55 percent at 2,725, and Honda Motor fell 0.91 percent at 2,381.
Elpida Memory gained 2.84 percent at 470 and silicon wafer maker Sumco was up 3.20 percent 953 on bargain buying after recent heavy falls.
“Many had been scared of buying these shares (on cloudy outlooks), but they’ve fallen to such cheap levels, prompting some investors to buy on dips,” Monex senior market analyst Toshiyuki Kanayama said.
