Japan stocks end winning streak

Japanese stocks snapped a four-session winning streak yesterday as investors locked in profits on recent gainers such as property firm Mitsui Fudosan in holiday-thinned trade, with Tokyo set to end the year as the world's worst performing major stock market.

One bright spot was Canon Inc, which gained despite a fall in the overall market after hiking its dividend outlook.

The benchmark Nikkei average appears headed to end the year down nearly 10 percent, the first annual fall in five years, as Japanese stocks struggle in the shadow of booming markets and vibrant economies elsewhere in Asia.

Tokyo's performance compares with a rise of 6 percent for the US Standard & Poor's 500. The pan-European FTSEurofirst 300 is up about 2 percent.

Soichiro Monji, chief strategist at the equity management department at Daiwa SB Investments, said investors took a breather after the four-day winning run, with additional downward pressure coming from a lack of trading factors and a shortage of participants.

"The focus now shifts to US economic data and US and Japanese corporate earnings due to come out early next year," he said.

"Global stock markets generally rebounded this week, but window dressing had a lot to do with the gains, and the New Year may see a week start."

Yutaka Miura, deputy manager of the equity information department at Shinko Securities, said investors cannot be bullish enough to keep buying stocks as uncertainty remains about the US market and currency moves after the New Year holiday.

The benchmark Nikkei average finished the day down 0.6 percent or 88.85 points at 15,564.69. It had gained more than 4 percent in a four-day winning run.

The broader TOPIX index shed 0.6 percent or 8.53 points to 1,499.94.

Declining shares beat advancing ones by a ratio of two to one.

Agencies

(China Daily 12/28/2007 page16)