CORRECTED-Nikkei hits 1-week low as US jobs data lifts yen; NTT tumbles on profit cut

lunes 10 de noviembre de 2014 02:18 GYT

(Corrects Nikkei level in the second paragraph)
    * NTT tumbles to 1-week low on poor earnings outlook
    * Asics jumps on strong outlook

    By Ayai Tomisawa
    TOKYO, Nov 10 (Reuters) - Japanese stocks retreated to a
one-week low on Monday morning as the yen rebounded against the
dollar after U.S. jobs data fell short of expectations, while
Nippon Telegraph and Telephone Corp sold off heavily on
a profit warning.
    The benchmark Nikkei share average dropped 0.8
percent to 16,752.04 after falling to as low as 16,713.37, the
weakest level since Oct. 31.
    NTT tumbled 6.4 percent to a two-week low after the
telecommunication company cut its full-year operating profit
outlook to 1.095 trillion yen from 1.215 trillion yen, hit by
its weak mobile phone business. It was the fourth-most traded
stock by turnover.
    Traders said that the Nikkei is likely pull back further
this week given the sharp rally since Oct. 31, thanks to the
Bank of Japan's surprise move to ease policy further and a
decision by the Government Pension Investment Fund to increase
its allocation of funds to domestic stocks.
    Foreigners, who were net sellers in Japanese futures for the
past five weeks, bought a total of 831.7 billion yen ($7.21
billion) worth of Japanese futures during Oct. 27-31, according
to data provided by the Osaka Exchange. It was the biggest
purchase on record, Nomura Securities said.
    "Given the extremely aggressive buying recently, the market
is prone to profit-taking," said Hiroyuki Nakai, senior
executive director at Tokai Tokyo Research Center. "Investors
seem to be satisfied after the Nikkei traded above the
17,000-mark and the dollar rose above 115 yen,"
    Exporters languished after the dollar slid to 114.45 yen
 from a seven-year high of 115.60 after U.S. jobs data
missed forecasts. 
    Toyota Motor Corp dropped 1.2 percent, Honda Motor
Co shed 0.6 percent and Advantest Corp fell
0.5 percent.
    Sneaker manufacturer Asics Corp rose as much as 7.1
percent after it hiked its net profit outlook for the year
ending December to 20 billion yen from previously forecast 17.5
billion yen.
    The broader Topix shed 0.3 percent to 1,359.87, and
the JPX-Nikkei Index 400 declined 0.3 percent to

 (Editing by Shri Navaratnam)