By RTT News, October 24, 2013, 10:44:00 PM EDT
(RTTNews.com) - Despite a positive lead from Wall Street, the Japanese stock market opened lower Friday with the yen's rise against the dollar prompting investors to press sales.
The benchmark Nikkei 225 index, which declined to 14,294.5 after opening at around 14,439, is currently trading at 14,323, down 163.4 points or 1.1 percent from its previous close.
Nikon Corp. is down more than 3 percent. Softbank Corp., Nippon Telegraph & Telephone Corp., Isuzu Motors, Central Japan Railway, Okuma Corp., Matsui Securities, Kansai Electric Power, Furukawa Electric and Shizuoka Bank are trading lower by 2 to 3 percent.
Mitsui Mining & Smelting, Hino Motors, Sapporo Holdings, Sumitomo Mitsui Trust Holdings, Tokyo Electric Power, Inpex Corp., Hitachi Zosen Corp. and Japan Steel Works are down 1.5 to 2 percent.
Canon Inc. ( CAJ ) is trading sharply lower following the company revising downwards its earnings forecast for financial year 2013.
Mitsubishi UFJ Financial ( MTU ), Chiba Bank, Resona Holdings, Toyota Motor ( TM ) and Mazda Motor are also trading notably lower.
Meanwhile, Mitsubishi Motors, Hitach Construction Machinery, Nippon Light Metal Holdings, Konami Corp., Mitsubishi Heavy Industries, Takara Holdings, Olympus Corp. and Dai-ichi Life Insurance are trading higher, gaining 1 to 2 percent.
Shares of Murata Manufacturing Co. are up on likely 200 percent jump in the company's April-September half net profit.
On the economic front, core consumer prices in Japan were up 0.7 percent on year in September, the Ministry of Internal Affairs and Communications said on Friday. That was in line with forecasts and down from 0.8 percent in August.
Overall inflation was up 1.1 percent on year, versus expectations for 0.9 percent, which would have been unchanged from the previous month. On a monthly basis, core CPI was up 0.1 percent and overall inflation added 0.3 percent.
Meanwhile, the index measuring corporate service prices in Japan was up 0.7 percent on year at 96.2 in September, the Bank of Japan said. That was below forecasts for an increase of 0.8 percent following the upwardly revised increase of 0.7 percent in August (originally 0.6 percent).
On a monthly basis, corporate service prices were flat after easing 0.1 percent in the previous month. In the third quarter of 2013, corporate service prices were up 0.6 percent on year and down 0.1 percent on quarter.
Among individual components of the survey, prices were higher for transportation, real estate, communications and rental; prices were down for advertising services.
In the currency market, the U.S. dollar traded in the lower 97 yen range in early deals in Tokyo. The yen is currently trading at 97.32 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Taiwan and South Korea are trading notably lower. Hong Kong, Singapore and Malaysia are down marginally, while Australia, Hong Kong and New Zealand are trading higher.
On Wall Street, stocks ended on a firm note on Thursday on the back of upbeat earnings news from Ford (F) and 3M ( MMM ), and on a report showing a bigger than expected drop in jobless claims.
The Dow jumped 95.9 points or 0.6 percent to 15,509.2, the Nasdaq climbed 21.9 points or 0.6 percent to 3,929 and the S&P 500 rose 5.7 points or 0.3 percent to 1,752.1.
Major European markets too moved higher on Thursday. While the French CAC 40 index climbed 0.4 percent, the U.K.'s FTSE 100 index and the German DAX index advanced by 0.6 percent and 0.7 percent, respectively.
U.S. crude oil snapped a two-day loss to end higher on Thursday, on renewed demand prospects after some upbeat manufacturing data out of China. Crude for December delivery ended up $0.25 or 0.3 percent at $97.11 a barrel on the New York Mercantile Exchange after scaling a high of $97.69 a barrel intraday.
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