Tokyo stocks fall for second day on higher yen, dismal US market

Tokyo stocks lost ground for a second consecutive day on Wednesday as the yen advanced a little which disappointed the market's sentiment and a dismal overnight performance in the U.S. market also spurred the downside. The 225-issue Nikkei Stock Average on Wednesday lost 96.25 points, or 0.62 percent, from Tuesday to close at 15,515.06. The broader Topix index of all First Section issues on the Tokyo Stock Exchange ended down 5.88 points, or 0.47 percent, at 1, 250.45. The market also declined on Tuesday after a big surge on Monday when the Nikkei index surged over 2 percent on a better-than- expected U.S. data on employment. The U.S. dollar hovered at upper 102 yen zone, lowered from previous 103 yen range in the previous two trading days, while the euro changed hand at lower 141 yen level. Brokers said the yen's advance is deemed negative for Japan's exporters as it will make them lose their profits. Meanwhile, the Dow Jones Industrial Average fell for the first time in three trading days as the fear that the U.S. Federal Reserve would decide on tapering its monetary easing policy as early as its policy meeting next week still covers the market. Analysts said the Fed's policy meeting on Tuesday and Wednesday is the center of attention in the market, although the Fed deciding on tapering at that time has largely been priced in. On Wednesday, decliners were led by paper and pulp, rubber and warehouse sectors, while information and communication, and construction shares were the only advancers. Declining issues outnumbered advancing ones 1,209 to 425 on the First Section, while 134 closed unchanged. Japanese banking shares finished generally lower, with Mizuho Financial Group down 1 yen, or 0.5 percent, to 213 yen and Sumitomo Mitsui Financial Group losing 30 yen, or 0.6 percent, to 5,000 yen. Exporting companies were hit by selling triggered by the stronger yen, with Nikon falling 20 yen, or 1.0 percent, to 1,984 yen and Olympus dropping 80 yen, or 2.4 percent, to 3,300 yen. Also on the minus side was heavily-weighted Nikkei component Fast Retailing, which dropped 450 yen, or 1.2 percent, to 37,700 yen. Meanwhile, pearl jeweler Tasaki shot up 51 yen, or 6.6 percent, to 821 yen after roughly doubling its operating profit projection for fiscal 2013 that ended in October thanks to robust domestic sales. Trading volume on the main section rose to 2,349.48 million shares from Tuesday's 2,142.29 million shares. The turnover was about 2,117.1 billion yen (about 20.63 billion dollars).