TOKYO: Japanese stocks swung between gains and losses as investors assessed the Federal Reserve’s signal that it may raise interest rates in December. Nintendo Co. and DeNA Co. plunged.
Shares of both companies sank more than 10 percent after Nintendo announced a smartphone game the two have been developing will be delayed by three months. Brokerages tumbled after Nomura Holdings Inc. and Daiwa Securities Group Inc. posted disappointing earnings, sending shares of both down by at least 4 percent. Komatsu Ltd. climbed 1.4 percent after the machinery manufacturer maintained forecasts despite first-half profit missing analyst estimates. Minebea Co. advanced 2.5 percent after the Nikkei newspaper said the bearing maker’s first-half profit will gain 13 percent.
The Topix index fell 0.3 percent 1,542.65 as of 12:42 p.m. in Tokyo, reversing gains of as much as 0.8 percent. The Nikkei 225 Stock Average swung to a 0.1 percent loss at 18,876.21. The yen traded at 120.71 per dollar after weakening 0.5 percent Wednesday as Fed policy makers left interest rates unchanged, while giving themselves the option to increase borrowing costs at their next meeting by saying growth in the U.S. remains “moderate.” The Bank of Japan meets Friday to review policy.
“If a December rate hike begins to look more likely, it may be a positive for the U.S., but it could once again put stress on emerging countries,” said Yusuke Kuwayama, a portfolio manager at Tokio Marine & Nichido Fire Insurance Co. in Tokyo. “As Japan has quite a bit of exposure to China and other Asian developing countries, we could see Japanese shares lag” their peers in the U.S.
