TOKYO: Japanese stocks fluctuated as stronger-than-expected U.S. factory data boosted expectations that the U.S. will raise interest rates, while the yen fell to fresh 12-year lows against the dollar.
TDK Corp., which gets more than 90 percent of its electronic component sales abroad, added 0.8 percent, as the weaker yen boosted exporters. Power companies led gains after JPMorgan Chase & Co. raised its rating on several companies in the sector, including Chubu Electric Power Co., which surged 4.4 percent. NTT Docomo Inc. jumped 3.4 percent after the Nikkei newspaper reported the mobile carrier plans to boost shareholder returns through buybacks and cost reductions. Japan Tobacco Inc. fell 2 percent after its Canadian subsidiary was ordered to pay C$2 billion to plaintiffs of two class action lawsuits.
The Topix index dropped 0.4 percent to 1,672.74 as of 12:38 p.m. in Tokyo, reversing earlier gains of 0.3 percent. The Nikkei 225 Stock Average lost 0.3 percent to 20,501.08. Both measures have rallied for 12 days. The yen traded at 124.66 per dollar after weakening 0.5 percent yesterday as U.S. manufacturing data indicated renewed strength in the world’s largest economy.
