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Tokyo shares down 1.50 percent at noon
Fri, Jul 30, 2010
AFP

TOKYO - Tokyo shares fell 1.50 percent Friday after Japan's unemployment and factory output figures missed market expectations, underlining the still frail nature of the country's economic recovery.

Sentiment was weighed down by Wall Street's losses Thursday, and strong earnings results from Sony and Nissan Motor failed to revive the mood, traders said. A strong yen also ate into exporters.

The benchmark Nikkei index of the Tokyo Stock Exchange lost 145.84 points to 9,550.18. The Topix index of all first-section shares slipped 1.36 percent, or 11.71 points to 849.56.

Sharp was down 2.3 percent, Canon dropped 1.8 percent and Hitachi fell 0.9 percent. DRAM maker Elpida Memory was off 2.8 percent to 1,321 yen as investors took profit following the company's return to profit in the first quarter.

Economic data in Japan weighed on sentiment.

Unemployment rose to 5.3 percent in June, the highest level since November and missing market expectations of 5.1 percent. Industrial output fell 1.5 percent in June, off expectations of a 0.l percent rise.

Japan's industrial output will continue slowing until the year-end as government economic stimulus measures are set to expire, Mizuho Securities Research & Consulting economist Norio Miyagawa told Dow Jones Newswires.

However, a few bucked the overall market trend.

Sony surged 4.2 percent after it announced Thursday that it had bounced back into the black in the first quarter. The company raised its full-year earnings forecast, betting on the strength of its main electronics business.

Nissan Motor was up 1.5 percent after the carmaker also said it had swung back into the black in the April-June period, posting a 106.65-billion-yen net profit.

Shinsei Bank was up 2.7 percent after its first quarter net profit more than doubled to 13.88 billion yen from the previous year, surpassing even its full-year net profit forecast of 12.5 billion yen.

Shinsei shares were also supported after the bank said Thursday it has no immediate plans to raise capital.

Financials Nomura Holdings, Mizuho Financial Group and Mitsubishi UFJ Financial Group will post quarterly earnings results later in the day. Honda Motor and All Nippon Airways will also announce results.

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