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Tokyo stocks close 1.22% lower

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(Globalpost/GlobalPost)

Japanese shares closed 1.22 percent lower on Thursday, weighed by a stronger yen and losses on Wall Street after disappointing earnings reports.

The Nikkei 225 index at the Tokyo Stock Exchange ended down 162.82 points at 13,220.07 while the Topix index of all first-section issues fell 1.15 percent, or 13.04 points, to 1,122.97.

"The entire market was technically overbought coming into this week, and essentially looking for decent sell catalysts in order to consolidate," said Tachibana Securities market analyst Kenichi Hirano.

"But strong housing starts data out earlier this week should alleviate fears of a US economic pullback, while signs do not point to Japan taking much flak over its super-easy (monetary) policy stance heading into the G20 summit this weekend. Shares will be ready to resume rising starting next week," he added.

US stocks closed sharply lower after disappointing earnings reports and a 5.5 percent plunge in Apple shares, along with dreary economic sentiment in Europe.

The Dow Jones Industrial Average dropped 138.19 (0.94 percent) to 14,618.59.

In Tokyo, Toyota Motor was off 2.16 percent at 5,430 yen, while several Apple component suppliers were underperforming on fears of slower iPhone sales, with Murata Mfg down 2.94 percent at 7,910.

All Nippon Airways was up 3.55 percent at 204 yen and Japan Airlines was up 0.82 percent at 4,255 yen, after a report that US and Japanese aviation regulators will soon give the green light to the grounded Boeing 787 Dreamliner.

GS Yuasa, the battery supplier for the 787 passenger jet, surged 5.48 percent to 404 yen.

The greenback fell to 97.95 yen in Tokyo afternoon trade, compared with 99.19 in New York late Wednesday.

The euro was at 127.82 yen against 127.97 yen, after slipping as low as 126 yen Monday. The euro also fetched $1.3054, compared with $1.3033 in New York.

-- Dow Jones Newswires contributed to this story. --

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