1st LD Writethru: Tokyo stocks end mixed on yen's retreat, waning Fed rate cut hopes

Source: Xinhua| 2019-07-09 18:34:07|Editor: xuxin
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TOKYO, July 9 (Xinhua) -- Tokyo stocks ended mixed Tuesday as buying supported by the yen's retreat against the U.S. dollar in early trade was offset by waning expectations of a hefty rate cut by the U.S. Federal Reserve.

The 225-issue Nikkei Stock Average added 30.80 points, or 0.14 percent, from Monday to close the day at 21,565.15.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, lost 3.51 points, or 0.22 percent, to finish at 1,574.89.

Local brokers said that trading got off to a bright start as a comparatively weak yen versus the U.S. dollar lifted export-related issues.

Exporters cheer a weaker yen as overseas profits are boosted when repatriated and competitiveness enhanced, which can lead to guidances being raised, they added.

But waning expectations of a hefty rate cut by the Fed dampened investor sentiment and also dragged down other major Asian bourses, in twine with Wall Street slipping overnight for a second straight trading day, following better-than-expected jobs data released in the U.S. late last week.

"Receding expectations of hefty rate cuts by the U.S. Federal Reserve at the end of this month are still weighing on Asian shares. It's hard to imagine they would rise in the next day or two," Chihiro Ota, general manager of investment research at SMBC Nikko Securities Inc., was quoted as saying.

Oil-related issues found favor however, as tensions in the Middle East may increase the price of crude oil, market strategists highlighted.

Conversely, chip-oriented issues lost ground after Apple Inc. slumped overnight on Wall Street, following Rosenblatt Securities downgrading the tech giant's shares to "sell" from "neutral," saying the company would face "fundamental deterioration" in the next six to twelve months.

By the close of play, oil and coal product, and farm and fishery issues led notable gainers, while marine transportation, and textile and apparel-linked issues comprised those that declined the most.

Issues that fell outpaced those that rose by 1,399 to 664 on the Firs Section, while 86 ended the day unchanged.

On the main section on Tuesday, 988.63 million shares changed hands, dropping from Monday's volume of 1,078.38 million shares.

The turnover on the second trading day of the week came to 1,669.7 billion yen (15.33 billion U.S. dollars).