Nikkei falls to 1-week low after Fed; strong yen hurts sentiment

miércoles 17 de junio de 2015 22:34 GYT
 

* Market will focus on U.S. economic indicators even more -
traders
    * Semiconductor makers fall on low "BB ratio"

    By Ayai Tomisawa
    TOKYO, June 18 (Reuters) - Japan's Nikkei share average fell
to a fresh one-week low on Thursday after the market digested
the U.S. Federal Reserve's dovish stance on a rate hike, while a
stronger yen hurt overall sentiment.
    The Nikkei share average dropped 0.7 percent to
20,078.47 in midmorning trade after falling to as low as
20,042.43, the lowest level since June 10.
    After a closely-watched two-day meeting, the Fed said the
economy was likely strong enough to support an interest rate
increase by the end of the year. But it lowered its expectations
for 2015 economic growth because of a weak start to the year and
reduced its growth and federal funds rate forecast.
    "The Fed's view on the rate hike gave little surprise to the
market," said Masaru Hamasaki, head of market & investment
information department at Amundi Japan. "The market is rather
concerned about the U.S. economic view in the future."
    He said that investors will focus on U.S. economic data more
carefully, and if a data disappoints them, Japanese cyclical
stocks like exporters may get hit because the dollar will likely
lose steam against the yen.
    On Thursday, banks and exporters languished. Mitsubishi UFJ
Financial Group shed 1.2 percent and Mizuho Financial
Group dropped 1.6 percent. Honda Motor Co 
dropped 0.7 percent and Panasonic Corp declined 0.8
percent after the dollar slipped to JPY=, from a high
of 124.465.
    Semiconductor equipment makers underperformed after
Semiconductor Equipment Association of Japan said that BB ratio,
or book-to-bill ratio, fell to 0.93 in May, falling below 1.0
for a third straight month. A figure below 1.0 means equipment
was over supplied. Sumco Corp dropped 3.6 percent and
Advantest Corp shed 1.7 percent.
    The broader Topix fell 0.5 percent to 1,624.83 and
the JPX-Nikkei Index 400 shed 0.6 percent to
14,653.50.

 (Editing by Simon Cameron-Moore)