TOKYO: Tokyo stocks slipped 0.37 per cent as a stronger yen hit exporters, a day after it hit a more than seven-year high and despite upbeat sentiment following news of a Ukraine ceasefire deal.
The benchmark Nikkei 225 at the Tokyo Stock Exchange fell 66.36 points on Friday to close at 17,913.36, while the Topix index of all first-section shares was flat, edging down 0.01 points to 1,449.38.
On Thursday, the Nikkei ended at its highest level since July 2007, boosted by a weak yen and upbeat machinery orders data.
But the yen strengthened in Friday trade, which is a negative for shares of Japanese exporters as it erodes the value of their repatriated overseas income.
“We had a big gain yesterday and there’s a sense of accomplishment after the Nikkei 225 reached 18,000,” Juichi Wako, a senior strategist at Nomura Holdings, told Bloomberg News.
“The (US) dollar’s falling again after the yen hit 120 against it. With the problems in Ukraine and Greece yet to be completely resolved, it’s difficult to keep buying.”
On currency markets, the greenback bought Y118.54, down from Y118.97 in New York and well off Y120.27 in Tokyo earlier on Thursday.
Toyota shares slipped 0.54 per cent to Y7,808.0, Sony edged down 0.34 per cent to Y3,220.5, while camera giant Canon fell 0.58 per cent to Y3,812.5.
Tokyo’s downturn followed a rally on US and European markets after the leaders of Ukraine, Russia, France and Germany on Thursday hammered out a blueprint to end the 10-month conflict between Kiev and pro-Moscow rebels.
On Wall Street Thursday, the Dow closed up 0.62 per cent, the S&P 500 gained 0.96 per cent and the Nasdaq surged 1.18 per cent. In Europe, Frankfurt, Paris and London were also all up on Thursday.
Investors are also keeping a close eye on Greece as the debt-hit country’s government tries to strike a fresh deal over the terms of its international bailout.
