Nikkei slides 2.3 pct, weak data dampens sentiment

Wed Jul 8, 2009 6:21am BST
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* Nikkei hits 6-week low, poised for 6 straight days of falls

* Exporters dragged lower by strong yen, economy doubts

* Machinery stocks hurt after unexpected fall in May orders

By Shinichi Saoshiro

TOKYO, July 8 (Reuters) - Japan's Nikkei average fell 2.3 percent to six-week lows on Wednesday, hurt by an unexpected slide in domestic machinery orders and as the yen rose to seven-week highs against the dollar on talk of more stimulus for the U.S. economy.

Komatsu (6301.T: Quote, Profile, Research) and other machinery makers dropped after Japan's core private-sector machinery orders fell 3.0 percent in May from the previous month, suggesting a recovery in capital spending may be delayed. [ID:nT292365]

Market analysts say the equity market has been going through a reality check after data on Thursday showed U.S. employers had shed nearly half a million jobs in June with the unemployment rate jumping to 9.5 percent, the highest in nearly 26 years. [ID:nN01210643]

"Market sentiment has deteriorated at a faster-than-expected pace following the weak U.S. employment data and the adjustment phase could be a long drawn-out one," said Takashi Kamiya, chief economist at T&D Asset Management.

Poised to put in its sixth straight day of losses, the benchmark Nikkei .N225 lost 221.84 points to 9,425.95. It fell as low as 9,407.98, its lowest level since May 28.  Continued...

 
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