Nikkei dips as yen stays strong, GDP disappoints

domingo 14 de agosto de 2016 22:16 GYT
 

* Sharp soars after Foxconn completes takeover

* BOJ buys ETFs on Friday

By Ayai Tomisawa

TOKYO, Aug 15 (Reuters) - Japan's Nikkei share index slipped on Monday as the yen stayed strong and data showed economic growth stalled in the second quarter, souring investor sentiment.

The Nikkei dropped 0.2 percent to 16,884.76 points by midmorning, after rising 4.1 percent last week.

"The market will likely stay weak throughout the day, though expectations for the BOJ's ETF buying may limit the downside," said Hikaru Sato, a senior technical analyst at Daiwa Securities.

The Bank of Japan on Friday bought 1.2 billion yen of exchange traded funds focused on companies which support investment in physical and human capital. The central bank bought 70.7 billion yen of ETFs on Wednesday.

"If the market is in negative territory in the morning session, there are hopes that the BOJ will buy ETFs in the afternoon," Sato said.

The central bank said late last month that it would increase ETF purchases so its total holdings increase at an annual pace of 6 trillion yen, up from its previous pace of 3.3 trillion yen.   Continuación...