NIKKEI SLIPS TOWARD WORST WEEKLY LOSING RUN IN 20 YEARS
DATE: 01/06/2012
TOKYO: Japan's Nikkei average slipped on Friday morning, heading for a
ninth straight week of losses to match its longest such run in 20 years, after
disappointing Chinese and U.S. data compounded fears about the deepening euro
zone debt crisis.
Concern about slowing growth in the
world's two biggest economies and the possibility of the euro zone's collapse
kept the yen firm against the dollar and sent it rocketing to an 11-1/2 year
high against the euro, weighing on exporters who already face weakening demand
for their products. Canon Inc, Mazda
Motor Corp, Nissan Motor Co and Sony Corp lost between 2 and 4 percent.
The Nikkei slipped 0.7 percent to 8,479.12. "The problem is that although Japanese stocks are technically cheap according to past barometers, the market has always moved more on foreign factors than domestic ones," said Yutaka Miura, senior technical analyst at Mizuho Securities. "So the falls today are a reaction to poor U.S. data last night."
U.S. jobless claims rose for the seventh week in eight, putting investors on edge before Friday's monthly nonfarm payrolls report, while factory activity in the U.S. Midwest slowed considerably this month and economic growth in the first quarter was softer than anticipated.
Economists in a Reuters poll estimated that 150,000 jobs were created in May, compared with 115,000 in April, with the unemployment rate expected to remain at 8.1 percent.
China announced on Friday its official purchasing managers' index (PMI) fell to 50.4 in May, the weakest this year and down from April's 13-month high, indicating that output is continuing to cool in the world's second-largest economy.
The Nikkei slipped 0.7 percent to 8,479.12. "The problem is that although Japanese stocks are technically cheap according to past barometers, the market has always moved more on foreign factors than domestic ones," said Yutaka Miura, senior technical analyst at Mizuho Securities. "So the falls today are a reaction to poor U.S. data last night."
U.S. jobless claims rose for the seventh week in eight, putting investors on edge before Friday's monthly nonfarm payrolls report, while factory activity in the U.S. Midwest slowed considerably this month and economic growth in the first quarter was softer than anticipated.
Economists in a Reuters poll estimated that 150,000 jobs were created in May, compared with 115,000 in April, with the unemployment rate expected to remain at 8.1 percent.
China announced on Friday its official purchasing managers' index (PMI) fell to 50.4 in May, the weakest this year and down from April's 13-month high, indicating that output is continuing to cool in the world's second-largest economy.
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NEWS
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