Nikkei's early gains unravel as yen rebounds

miércoles 12 de octubre de 2016 22:52 GYT
 

* Nikkei pulls back from 17,000 resistance as yen pares losses

* Suzuki shares rise on news of possible Toyota tie-up

TOKYO Oct 13 (Reuters) - Japan's Nikkei share average gave up early gains and slipped on Thursday as the yen clawed back ground it had lost to the dollar.

The Nikkei slipped 0.4 percent by midday to 16,774.26, moving away from last Friday's five-week highs.

"Resistance for the Nikkei lies around 17,000 today, and it is foreign exchange that largely determines whether or not it would be broken," said Yutaka Miura, senior technical analyst at Mizuho Securities.

The dollar skidded 0.5 percent to 103.59 yen, moving away from its Wednesday high of 104.49 yen, which was its highest level since late July.

The greenback had gotten a lift overnight after minutes of the U.S. Federal Reserve's September policy meeting showed several voting policy members believed a rate hike would be warranted "relatively soon" if the U.S. economy continued to strengthen.

"The minutes last night boosted sentiment for a sooner-rather-than-later rate hike in the states," which lifted the dollar, said Gavin Parry, managing director at Parry International Trading in Hong Kong.

"So 17,000 has been very much a resistance level, and given the fact this morning that the yen had already broken down through the 104 handle, there just wasn't that momentum."   Continuación...