Nikkei falls to near 2-week low as banks hit by Basel report on cash cushion

martes 10 de marzo de 2015 02:20 GYT

TOKYO, March 10 (Reuters) - Japan's Nikkei fell to a near
two-week low in volatile trade on Tuesday, erasing earlier gains
as banks were hit hard by a report saying the Basel Committee
may ask banks to boost capital as a sufficient cushion in case
of spikes in interest rates.    
    The Nikkei ended 0.7 percent lower at 18,665.11, the
lowest closing level since February 25. In the morning session,
the Nikkei rose to as high as 18,924.38.
    The broader Topix fell 0.5 percent to 1,524.75 and
the JPX-Nikkei Index 400 also shed 0.5 percent to
    "The market was holding up in the morning and offset this
concern in the banking sector. But since the market could not
break through 19,000 despite a weaker yen, investors decided to
take profits," said Norihiro Fujito, a senior investment
strategist at Mitsubishi UFJ Morgan Stanley Securities.
    The Nikkei business daily said the proposal to boost banks'
capital has been shepherded through the Basel Committee on
Banking Supervision by the U.K. and Germany, which are concerned
about a rise in rates, but Japan and the U.S. have raised strong
    Japan's opposition stems from its banks holding massive
quantities of government bonds: 128 trillion yen ($1.05
trillion) worth in January, the Nikkei said.

 (Reporting by Ayai Tomisawa; Editing by Shri Navaratnam)