Nikkei falls 2.0 pct on Wall St weakness, weak oil price, strong yen
* Negative news accumulated over the long weekend - analyst * Exporters hurt after dollar/yen falls to one-month low * Retail shares tumble on weak profits for March-Nov period By Ayai Tomisawa TOKYO, Jan 13 (Reuters) - Japan's Nikkei share average fell 2.0 percent on Tuesday after a long weekend as declines in U.S. stocks and weakening oil prices dampened risk appetite, while a strong yen hurt exporters. By mid-morning, the Nikkei was at 16,849.34, nearing its one-month low of 16,672.94 hit on Dec. 17. On Friday, it gained 0.2 percent. Retail shares weighed. Aeon Co tumbled 5.9 percent to a one-month low after it reported that its operating profit fell 48 percent in the March-November period from a year earlier. While Seven & i Holdings dropped 3.1 percent after posting a worse than expected profit for the March-November period. Investors in Japan returned to the market on Tuesday after a three-day weekend to find U.S. shares had been battered, oil prices had slid further and the yen had risen. Analysts said that last week the market had briefly taken comfort from a halt in sliding oil prices, but prices had once again begun to fall. Goldman Sachs slashed its short-term price forecast for crude. "Today's drop is due to negative news accumulated during the long weekend," said Takuya Takahashi, an analyst at Daiwa Securities. "Even U.S. jobs data were mixed, and U.S. earnings wasn't good." U.S. job growth increased briskly in December, but wages posted their biggest decline in at least eight years in as the tighter labour market has yet to give much of a boost to workers. For U.S. earnings, Tiffany & Co cut its full-year profit forecast, citing a disappointing holiday shopping season. Meanwhile, investors digested weekend news that Japan's government will propose a record budget for next fiscal year of more than $800 billion but cut borrowing for a third year, as Prime Minister Shinzo Abe seeks to maintain growth while curbing the heaviest debt burden in the industrial world Exporters were hit as the dollar dropped to 117.72 yen, the lowest since Dec. 17. Toyota Motor Corp dropped 2.8 percent, Honda Motor Co fell 1.5 percent and Sony Corp declined 4.2 percent. Index-heavy stocks also dropped, with Fast Retailing Co falling 2.3 percent and SoftBank Corp dropping 2.4 percent. The broader Topix shed 1.8 percent to 1,356.20, and the new JPX-Nikkei Index 400 fell 1.7 percent to 12,287.35. (Editing by Simon Cameron-Moore)
© Thomson Reuters 2017 All rights reserved.