(Updates to midmorning)
TOKYO, Oct 30 (Reuters) - Japanese stocks edged down on
Tuesday as profit-taking sales of exporters such as Canon Inc
<7751.T> dragged the market lower, but strong energy stocks and
expectations of good earnings results provided a floor.
Chances of a U.S. rate cut on Wednesday are also providing
support, but are prompting market players to sideline themselves
ahead of the decision, making it difficult for stocks to rise.
Most activity in Tokyo centred on individual shares, with
attention on a wave of earnings due out later on Tuesday that
include trading firms Itochu Corp <8001.T> and Sojitz Corp
<2768.T>, Nippon Steel Corp <5401.T> and Matsushita Electric
Industrial <6752.T>.
"Basically the selling we're seeing today is nothing more
than a response to the market's sharp rise on Monday. Buyers are
taking a bit of a break, while others are taking profits," said
Yumi Nishimura, manager of the investment advisory section of
Daiwa Securities SMBC.
"There's no deeper factors than this. For example, Nippon
Yusen posted good results yesterday and that prompted buying, but
today they're being sold."
Nippon Yusen KK <9101.T>, Japan's biggest shipping line,
lifted its profit forecast for the second time this year on
Monday after its first-half income jumped 86 percent on an
expanded fleet and unprecedented demand in the dry bulker market.
[ID:nL29322943]
Oil's jump to a record high near $94 a barrel sent energy
shares higher and lent the overall market some support.
By 0056 GMT the benchmark Nikkei average <.N225> was down 0.4
percent or 58.05 points at 16,640.03. The broader TOPIX index
<.TOPX> was down 0.1 percent at 1,605.21.
HIGH OIL
Energy issues Inpex Holdings Inc <1605.T> and Nippon Oil Corp
<5001.T> powered upwards after oil jumped to a record high as
stormy weather disrupted supplies from Mexico and the dollar
wallowed near record lows.
Shares of Inpex, Japan's top oil developer, rose 2.4 percent
to 1.3 million yen and Nippon Oil, the nation's top oil refiner,
climbed 1.5 percent to 1,038 yen.
U.S. crude <CLc1> settled up $1.67 at $93.53 a barrel after
striking a record $93.80 earlier. [ID:nL29262364]
Canon fell 1.2 percent to 5,810 yen and Sony Corp <6758.T>
slid 1.2 percent to 5,650 yen.
Shares in Takeda Pharmaceutical Co Ltd <4502.T> plunged after
it said on Monday that U.S. health authorities had recommended it
stop some clinical trials of its cholesterol-lowering TAK-475, a
key drug candidate for the company. [ID:nT174281]
Takeda was down 10.9 percent at 7,180 yen.
Advantest Corp <6857.T> and Tokyo Electron Ltd <8035.T> slid
after an industry group said on Monday orders for Japanese
semiconductor-making equipment plunged in September, logging the
seventh straight month of decline as computer memory makers
reined in spending. [ID:nTKB002867]
Advantest fell 3.4 percent to 3,129 yen and Tokyo Electron
lost 1.8 percent to 6,600 yen.
((Reporting by Elaine Lies, editing by Michael Watson; Reuters
Messaging: [email protected];
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Keywords: MARKETS JAPAN STOCKS