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Roundup: Tokyo stocks retreat on yen's rise, weak U.S. retail data ahead of earnings

Xinhua, April 15, 2015 Adjust font size:

The Nikkei stock index lost ground Wednesday, losing 0.20 percent as investors continued to opt to lock in profits due to the yen gaining against its major counterparts, as lackluster U.S. retail data contributed to a circumspect market mood and triggered concerns for the health of the world's largest economy.

The Nikkei 225 stock average dropped 38.92 points to finish at 19,869.76, while the broader Topix index of all first-section issues shed 0.13 percent, or 2.01 points, to close the day at 1, 588.81.

Local traders said that the market may be approaching being overbought and generally speaking was showing some signs of overheating, but with corporate earnings set to swing into gear here next month, they said that the next correction would likely lift prices higher in the medium to longer term, if the results from Japan Inc. come in on or above par. "There's still a feeling of overbuying left in the market. We' re at a stage where we see buying if the numbers are surprisingly good for company earnings,"said Hiroichi Nishi, an equities manager at SMBC Nikko Securities Inc.

Contributing to a circumspect mood was retail data from the U.S. coming in weaker than expected for March, an ominous sign, perhaps, just as earnings season in the U.S. is due to kick off, analysts here said.

"There's a persistent wait-and-see mood ahead of upcoming U.S. indicators and with Japanese earnings approaching later in the month," said Toshikazu Horiuchi, an equity strategist at IwaiCosmo Securities Co.

A stronger yen dented exporter shares, with the greenback changing hands at 119.58 yen in Tokyo in afternoon trade Wednesday, compared to 119.44 yen logged in New York.

Toyota reversed 0.14 percent to close at 8,273 yen and Hitachi fell 1 percent to close at 807 yen. Consumer electronics giant Sony meanwhile advanced 0.78 percent to finish at 3,779 yen.

Among financial issues, Sumitomo Mitsui Financial Group retreated 0.52 percent to 4,724 yen, while top bank Mitsubishi UFJ added 0.47 percent to end at 783 yen.

Oil related issues comprised the day's biggest gainers, as prices for crude extended their rally for a fifth day, aided by Iran, the second such country this month, to lean on OPEC to lower production amid the ongoing glut.

As such, oil exploration behemoth Inpex jumped 1.5 percent to end the day at 1,413 yen.

Japan Airlines was also in the spotlight Wednesday, soaring 5.1 percent to 3,930 yen, following Nomura saying the carrier will likely beat profit forecast in Q4.

Trading volume on Wednesday rose to 1.95 billion shares on the Tokyo Exchange's First Section, up from Tuesday's volume of 1.73 billion shares, with declining issues beating advancing ones by 1, 137 to 612. Endi