Nikkei bounces slightly, but sentiment fragile as Fed worries weigh

martes 9 de junio de 2015 22:38 GYT
 

* Nintendo rises after BOFA Merrill Lynch hikes rating
    * Truck makers fall after Citi cuts ratings
    * Strong machinery orders report provides limited impact

    By Ayai Tomisawa
    TOKYO, June 10 (Reuters) - Japanese stocks edged higher in
choppy trade on Wednesday after the sharp losses on the previous
day, but the upside was limited by lingering concerns about a
rate hike in the United States later this year.
    The Nikkei share average rose 0.3 percent to
20,152.72 after falling 1.8 percent on Tuesday, its biggest loss
in almost a month.
    Some of the previous day's big losers attracted buyers, with
 Honda Motor Co adding 1.1 percent and Fuji Heavy
Industries Ltd gaining 1.4 percent.
    But traders said that market sentiment was fragile, partly
shaken by higher global bond yields and expectations of a rate
rise by the U.S. Federal Reserve before year-end. 
    "Money is fleeing from advanced markets (which have risen
recently) including Japan, the U.S. and Europe, so more selling
is possible," said Eiji Kinouchi, chief technical analyst at
Daiwa Securities.
    He said that volatility may persist for a few more weeks
when markets including Japan and the U.S. have futures and
option settlements. During the settlement term, traders try to
profit from the volatility in the underlying stocks.
    Nintendo Co gained 1.4 percent after Bank Of
America Merrill Lynch hiked its rating to 'neutral' from
'underperform', citing expectations that its smart phone
business will likely grow from the year ending March 2017 and
beyond.
    On the other hand, Isuzu Motors Ltd dropped 1.6
percent and Hino Motors Ltd tumbled 3.5 percent after
Citigroup cut the truck makers' ratings to 'neutral' from 'buy',
citing weak demand in southeast Asia.    
    Strong machinery data didn't have much of an impact on the
market. Japan's core machinery orders unexpectedly rose in April
at the fastest pace in four months, in a sign companies are
turning more optimistic about business investment as domestic
demand strengthens. 
    The broader Topix gained 0.4 percent to 1,640.14 and
the JPX-Nikkei Index 400 added 0.3 percent to
14,808.55.
    
    

 (Editing by Shri Navaratnam)