Nikkei falls as disappointment over latest stimulus lingers

martes 2 de agosto de 2016 23:17 GYT
 

* Wall Street's overnight losses lead to subdued mood

* Earnings provide some bright spots

TOKYO Aug 3 (Reuters) - The Nikkei share average dipped to three-week lows on Wednesday after a downbeat session on Wall Street and on lingering disappointment with Japan's latest fiscal and monetary stimulus measures.

The Nikkei was down 0.9 percent at 16,249.97 points by late morning, touching its lowest intraday level since July 12.

The broader Topix shed 1.4 percent to 1,282.10. The banking sub-index skidded 3.2 percent. The JPX-Nikkei Index 400 was down 1.3 percent at 11,532.58.

Prime Minister Shinzo Abe's cabinet on Tuesday approved 13.5 trillion yen ($133.39 billion) in fiscal measures, but markets were disappointed it did not include more direct government spending which could give an immediate boost to economic growth.

The International Monetary Fund urged Tokyo to do more, and coordinate fiscal stimulus with further central bank measures that could include rate cuts and more asset purchases.

Last Friday, the Bank of Japan disappointed investors hoping for radical stimulus. While it increased purchases of exchange-traded funds to 6 trillion yen, some strategists and investors concluded that the central bank is running out of options.

"Disappointment is still evident after the market priced in high hopes for government stimulus and monetary easing," said Norihiro Fujito, a senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.   Continuación...