Nikkei drops to fresh 1-week low on weak U.S. shares; ANA shines
* ANA rises on increased traffic, CLSA's rating hike * Analysts see signs Japanese shares still overheated By Ayai Tomisawa TOKYO, July 9 (Reuters) - Japan's Nikkei share average fell to a fresh one-week low on Wednesday morning as U.S. stocks beat a retreat before the start of the earnings season, and the stronger yen hurt exporters. Bucking the weakness, ANA Holdings rose 1.3 percent after CLSA hiked its rating to 'buy' from 'outperform' citing its strong inbound and outbound traffic. The airlines said on Tuesday that its international traffic for the first time outpaced its rival Japan Airlines Co in May. The Nikkei dropped 0.5 percent to 15,237.08 in mid-morning trade after going as low as 15,185.32, its lowest level since July 1. Analysts said there were signs that the Japanese shares are overheated. Tuesday's up-down toraku ratio was 128, with a level above 120 signalling an overheated market. "Today's fall is a little correction and we may see more declines in the coming days," said Takuya Takahashi, an analyst at Daiwa Securities. But he added that the Nikkei should be supported above the 15,000-line. Exporters lost ground after the dollar slipped to a near one-week low of 101.48 yen. Toyota Motor Corp shed 1.1 percent, Nissan Motor Co declined 1.1 percent and Panasonic Corp fell 1.2 percent. The broader Topix slipped 0.5 percent to 1,269.55, and the JPX-Nikkei Index 400 dropped 0.4 percent to 11,532.74. (Editing by Eric Meijer)
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