Nikkei falls after weak JGB auction sours mood; global growth concerns weigh

martes 3 de febrero de 2015 02:44 GYT

* Investors concern that bond holders may unwind positions -
    * Airlines, rubber product makers fall on a rebound in oil

    By Ayai Tomisawa
    TOKYO, Feb 3 (Reuters) - Japanese stocks extended early
losses and fell to a 1-1/2-week low on Tuesday as the results of
the new 10-year Japanese government bonds auction were weaker
than expected, with worries about global growth also weighing on
risk appetite.
    The Nikkei share average ended 1.3 percent lower at
17,335.85 points, its lowest close since Jan. 22.
    The Ministry of Finance's auction of 2.4 trillion yen
10-year JGBs drew unexpectedly weak demand, producing the lowest
accepted price of 99.42, compared to market expectations of
around 100.00. 
    "The auction results triggered worries that those who have
long positions on bonds may unwind their positions and have a
big impact on other asset classes," said Nobuhiko Kuramochi, a
strategist at Mizuho Securities.
    Market participants also said that sentiment for global
growth has been sour, with the European Central Bank recently
easing policy and, in the latest move, the Reserve Bank of
Australia cutting interest rates to a record low on Tuesday.
    "After the Bank Of Japan eased monetary policy last fall,
central banks around the world have followed suit. While it is
seen unlikely that the BOJ will ease further any time soon,
people may find little reason that the yen will weaken further,"
Mizuho's Kuramochi said.
    Index-heavy stocks were lower, with Fast Retailing Co
 falling 2.0 percent and KDDI Corp dropping 2.9
percent. The companies together took a hefty 51.9 points from
the Nikkei benchmark.
    Disappointing U.S. data on Monday also weighted on the mood.
    The pace of growth in the U.S. manufacturing sector slowed
more than expected in January, and U.S. consumer spending
recorded its biggest decline since late 2009 in December, with
cheaper gasoline not translating into higher activity.
    Airline companies and rubber product makers, which are
beneficiaries from weak oil prices in the past few months,
continued to drop after oil prices rose strongly again on
Monday. Oil prices have rebounded 11 percent over the last two
straight sessions. 
    Japan Airlines dropped 5.2 percent, and ANA
Holdings fell 1.6 percent.
    Bridgestone Corp dipped 3.3 percent and Yokohama
Rubber shed 2.4 percent.
    The broader Topix shed 1.2 percent to 1,392.39 and
the JPX-Nikkei Index 400 declined 1.1 percent to

 (Editing by Kim Coghill)