Japanese stocks fell as weaker U.S. economic data sent the dollar lower against the yen, damping the earnings outlook for exporters.
The Topix index dropped 0.4 percent to 1,668.33 as of 9:01 a.m. in Tokyo, falling for a second day after a 12-day rally. The Nikkei 225 Stock Average lost 0.5x percent to 20,432.99. The yen traded at 124.06 per dollar after yesterday strengthening 0.5 percent, snapping seven days of declines that had pushed the Japanese currency to the lowest level since 2002. Disappointing U.S. factory data coupled with signs of progress over Greece’s debt crisis, which sent the euro soaring, compounded losses yesterday for the greenback.
U.S. factory orders in April fell 0.4 percent, compared with the 0.1 percent drop estimated by economists. It was the eighth contraction in nine months.
The euro surged the most in 10 weeks against the dollar as Greece’s creditors were said to be wrapping up a plan to break a deadlock for the disbursement of additional funds, ending months of acrimonious negotiations with creditors and lessening the threat of default.
E-mini futures on the Standard & Poor’s 500 Index added less than 0.1 percent after the underlying measure slipped 0.1 percent on Tuesday in New York.
Source : Bloomberg