TOKYO, Jul. 5, 2009 (Kyodo News International) --
(Editors: ADDING DETAILS AND PRICES)
Tokyo stocks fell sharply Monday morning, weighed down by a stronger yen and lower commodity prices while investors await fresh cues from when U.S. markets resume after a holiday Friday.
The 225-issue Nikkei Stock Average fell 154.80 points, or 1.58 percent, from Friday to 9,661.27 after losing ground for three straight days. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 9.52 points, or 1.03 percent, to 911.10.
Declines were led by sea transport, iron and steel, and mining issues. The few gainers were mainly defensive issues such as gas and electricity, information and communication, and pharmaceutical issues.
A stronger yen relative to the U.S. dollar weighed on Tokyo stocks with investors wary of it denting Japanese exporter profits, brokers said. The yen factor sent exporters down, with bellwether Sony (NYSE:SNE) dropping 45 yen, or about 2 percent, to 2,395 yen.
The U.S. currency traded mostly at the lower 95 yen level in the morning, down from the upper 95 yen range Friday in Tokyo.
Lower commodity prices and shipping fees dragged shipper Mitsui OSK Lines down 21 yen, or over 3 percent, to 572 yen and trading house Itochu fell 29 yen, or over 4 percent, to 622 yen.
In the absence of other cues, the focus is now on upcoming U.S. and Chinese indicators and the start of U.S. quarterly earnings reports this week, brokers said. The U.S. Institute for Supply Management non-manufacturing index is due out later Monday.
''Investors begin to realize expectations for a quick global economic recovery have gone too high and more of them are now inclined to ascertain the actual state of economic fundamentals before making bold moves,'' said Hiroichi Nishi, equity division general manager at Nikko Cordial Securities Inc.
A tentative mood is spreading also amid political uncertainty in Japan, after the victory of a candidate backed by the opposition Democratic Party of Japan in Sunday's Shizuoka gubernatorial election raised the possibility of a change of government in an anticipated general election, Nishi said.
The Tokyo market's momentum has slowed in recent weeks after the Nikkei hit an eight-month high above 10,000 in mid-June, heavily influenced by losses in the futures market, brokers said.
On the First Section, declining issues outnumbered advancing ones 1,052 to 487, with 150 others ending the morning unchanged.
Battery maker GS Yuasa, the morning value leader, fell 32 yen, or almost 4 percent, to 851 yen. Volume leader Mizuho Financial Group was down 2 yen, or about 1 percent, to 226 yen.
Bucking the trend, menswear chain operator Konaka rose 19 percent, or 53 yen, to 332 yen to become the morning's biggest percentage gainer.
Trading volume on the main section was light, coming to 825.20 million shares, down from Friday morning's 942.46 million.
The TSE's Second Section index was down 0.90 of a point, or 0.04 percent, to 2,218.53 on a volume of 43.21 million shares. On the Osaka Securities Exchange, the near-term September Nikkei 225 index futures contract was down 170 points to 9,670.
