Nikkei ends at 8-month high on weak yen; retailers fall on cost concerns

jueves 11 de septiembre de 2014 02:41 GYT
 

* Market retains expectations on easing in long-term -
analysts
    * Retailers languish on rising raw material price concern

    By Ayai Tomisawa
    TOKYO, Sept 11 (Reuters) - Japan's Nikkei share average rose
to an eight-month high on Thursday as the weak yen lifted
sentiment and a meeting between the central bank governor and
prime minister boosted expectations of additional easing in the
long-term.
    The Nikkei climbed 0.8 percent to 15,909.20, the
highest closing level since Jan. 10. The broader Topix 
hit a six-year high, rising 0.3 percent to 1,311.24.
    Bank of Japan Governor Haruhiko Kuroda said he told Prime
Minister Shinzo Abe that the central bank will not hesitate to
ease policy further if its 2 percent inflation goal becomes
difficult to achieve. 
    But he also told Abe that a positive economic cycle in Japan
is firmly in place, suggesting there is no immediate need to
act. 
    "There was nothing new in the meeting outcome... it's what
Kuroda has been saying over the last few months," said Isao
Kubo, equity strategist at Nissay Asset Management. "But the
fact that they had a meeting showed that they keep an eye on the
economy."
    He added that while consumption is weak, there are still
hopes for additional easing in the long-term.
    The dollar hit a new six-year high of 107.02 yen in
Asian trade. Exporters got a boost, with Honda Motor Co 
rising 1.0 percent, Sony Corp 2.7 percent and Toshiba
Corp 1.3 percent.
    However, retailers languished on concerns about rising raw
material prices. Supermarket operators Aeon Co fell 0.5
percent and Seven & i Holdings Co dropped 1.7 percent.
    "While consumption is weak, they can't raise prices, so
investors saw that these companies have no choice but to see
their profits squeezed in the coming months if the yen keeps
weakening," said Norihiro Fujito, a senior investment strategist
at Mitsubishi UFJ Morgan Stanley Securities.
    The JPX-Nikkei Index 400 gained 0.3 percent to
11,887.55.

 (Editing by Richard Borsuk)