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Japan stocks edge down on new share sale reports

Japan stocks edge down on new share sale reports

Japan stocks opened the third quarter with little direction Wednesday, as reports of companies issuing new shares offset relief over a key central bank survey.
The benchmark Nikkei 225 stock average lost 18.51 points, or 0.2 percent, to 9,939.93 after wandering in and out of positive territory throughout the day. The broader Topix index fell 0.2 percent to 928.30.
The central bank's "tankan" survey reflected a slight uptick in gloomy corporate sentiment, pointing toward a gradual economic recovery.
The most-watched index of the quarterly report, which measures confidence at major manufacturers, rose to minus 48 from minus 58 in March, its worst reading ever. The figure represents the percentage of companies saying business conditions are good minus those saying conditions are unfavorable.
The results were a bit worse than expectations but still fell within tolerable levels, said Takuro Hayashi, an equity analyst at Cosmo Securities in Tokyo.
In the second quarter, the Nikkei index soared 23 percent in its best three-month performance since 1995. Further gains are likely in store this quarter, said Takuro Hayashi,
"Stocks may cool off at one point, but the overall outlook looks strong," Hayashi said.
Machinery makers rose after new data showed Chinese manufacturing expanded slightly in June. Kubota Corp. added 2.9 percent to 820 yenm while Komatsu Ltd. closed up 1.8 percent at 1,519.
Sentiment waned later in the afternoon on reports that All Nippon Airways Co., Japan's No. 2 carrier, and consumer lender Orix Corp. were planning big public share offerings.
All Nippon Airways slumped 5.9 percent to 317 yen, while Orix fell 4.8 percent to 5,530 yen.
After market close, the airline said it will issue 537.7 million new shares to raise up to 183 billion yen ($1.9 billion). Local media reported that Orix could raise up to 100 billion yen, but the company said in a statement that the news is "not a substantiated fact."
In currencies, the dollar was trading at 96.80 yen from 96.34 late Tuesday. The euro stood at $1.4072 from $1.4029.


Updated : 2020-12-03 19:16 GMT+08:00