(Updating further comment, share prices)
TOKYO (AFX) - Share prices closed lower for a fourth straight day, hit by sharp losses on Wall St overnight after disappointing retail sales data raised questions about the strength of the US economy, dealers said.
The Dow Jones Industrial Average finished down 104.04 points or 1 pct at 10,403.93. It was the first triple-digit decline for the blue chip gauge since March 16 and its lowest close since January 24.
The Nasdaq Composite Index tumbled 31.03 points or 1.6 pct to 1,974.37 and the S&P 500 lost 13.97 points or 1.2 pct to 1,173.79.
The US Commerce Department reported that US retail sales increased a seasonally adjusted 0.3 pct in March, and excluding auto sales, total sales advanced just 0.1 pct, the slowest gain in a year.
Economists were expecting increases of about 0.7 pct for total sales.
The Nikkei 225 Stock Average ended down 74.35 points or 0.6 pct at 11,563.17, off an intra-session low of 11,474.82.
The broader TOPIX index of all first section shares finished down 7.97 points or 0.7 pct at 1,168.42.
Decliners overwhelmed gainers 1,311 to 255, with 81 issues unchanged.
Volume stood at 1.400 bln shares, up from 1.262 bln yesterday.
Easier crude oil prices also put pressure on base material producers, thereby weighing on the broader market, dealers said.
On the New York Merchantile Exchange yesterday, May crude closed at 50.22 usd, down 3.2 pct, or 1.64 usd from the previous year.
"Falling crude prices are prompting short-term players to sell base material producers as it lowers expectations for an upward revision in their profit forecasts," said Keiji Numata, general manager of the investment information at Toyo Securities.
In addition, lingering concerns over the diplomatic row with China continues to weigh on investor sentiment, dealers said.
In the latest salvo between the two nations, Tokyo accused Beijing of turning a blind eye to anti-Japanese violence.
Traders also noted that some retail investors were stepping up selling to meet margin calls.
"Faced with massive margin calls, retail investors are dumping shares to finance them," Chuo Securities market analyst Koichi Seki said.
But the Japanese market showed some resistance on the downside.
"Given that some buying emerged after the Nikkei 225 index slipped below the 11,500 points level, the market may have passed through the very worst phase of the latest downturn," Chuo's Seki said.
Oil refiners and base material producers were broadly lower, with the largest refiner Nippon Oil slipping 17 yen or 2.2 pct to 751 and Cosmo Oil off 11 yen or 3.1 pct at 343.
Japan's largest steel maker Nippon Steel dropped 5 yen or 1.9 pct to 263 and the second-largest JFE tumbled 80 yen or 2.7 pct to 2,910.
In the non-ferrous group, Nippon Mining Holding fell 11 yen or 1,8 pct to 602 and Sumitomo Metal Mining lost 6 yen or 0.8 pct to 780.
High-techs were broadly lower, with the world's largest maker of testers for semiconductor chips and flat panel monitors, Advantest, falling 170 yen or 2.0 pct to 8,150 while the world's largest stepper maker, Nikon, was off 45 yen or 3.6 pct at 1,187.
Tokyo Electron -- the world's second-largest maker of semiconductor chip and flat panel display making equipment -- fell 50 yen or 0.8 pct to 6,060.
"Caution is growing stronger (on stocks in the electronics sector) ahead of the release Friday of first quarter results by Samsung Electronics," Toyo's Numata said.
"Investors are waiting to see if there will be any implications from that result on the trend for global technology shares," he added.
Kanebo closed down 200 yen or 15.5 pct at 1,091 after the struggling textile maker said it had inflated its earnings by a total of 215 bln yen between the year to March 2000 and the year to March 2004.
As a result of the re-statement of past results, Kanebo said it had had negative net worth for nine straight years, placing it in violation of listing standards.
Lawson Inc was up 90 yen or 2.2 pct at 4,100, after the firm announced yesterday it posted a record net profit in the year to February 2005.
"The result showed the solid nature of profit growth in the convenience store industry despite stiffer competition posed by shopping mall operators," said Masafumi Shoda, analyst at Nomura Securities.
"And as its new strategy which focuses on convenience stores with eat-in space is also doing ok, we have a bright outlook for the share price performance of Lawson," he said.
Fuji Television Network finished down 6,000 yen or 2.5 pct at 238,000 following a report it may spend 160-200 bln yen in settling a takeover battle peacefully with Internet portal Livedoor Co.
Nippon Broadcasting System fell 250 yen or 4.1 pct to 5,830, while Livedoor was down 7 yen or 2.1 pct at 324.
Yasuhiko.Seki@xfn.com
ys/mb
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
TOKYO (AFX) - Share prices closed lower for a fourth straight day, hit by sharp losses on Wall St overnight after disappointing retail sales data raised questions about the strength of the US economy, dealers said.
The Dow Jones Industrial Average finished down 104.04 points or 1 pct at 10,403.93. It was the first triple-digit decline for the blue chip gauge since March 16 and its lowest close since January 24.
The Nasdaq Composite Index tumbled 31.03 points or 1.6 pct to 1,974.37 and the S&P 500 lost 13.97 points or 1.2 pct to 1,173.79.
The US Commerce Department reported that US retail sales increased a seasonally adjusted 0.3 pct in March, and excluding auto sales, total sales advanced just 0.1 pct, the slowest gain in a year.
Economists were expecting increases of about 0.7 pct for total sales.
The Nikkei 225 Stock Average ended down 74.35 points or 0.6 pct at 11,563.17, off an intra-session low of 11,474.82.
The broader TOPIX index of all first section shares finished down 7.97 points or 0.7 pct at 1,168.42.
Decliners overwhelmed gainers 1,311 to 255, with 81 issues unchanged.
Volume stood at 1.400 bln shares, up from 1.262 bln yesterday.
Easier crude oil prices also put pressure on base material producers, thereby weighing on the broader market, dealers said.
On the New York Merchantile Exchange yesterday, May crude closed at 50.22 usd, down 3.2 pct, or 1.64 usd from the previous year.
"Falling crude prices are prompting short-term players to sell base material producers as it lowers expectations for an upward revision in their profit forecasts," said Keiji Numata, general manager of the investment information at Toyo Securities.
In addition, lingering concerns over the diplomatic row with China continues to weigh on investor sentiment, dealers said.
In the latest salvo between the two nations, Tokyo accused Beijing of turning a blind eye to anti-Japanese violence.
Traders also noted that some retail investors were stepping up selling to meet margin calls.
"Faced with massive margin calls, retail investors are dumping shares to finance them," Chuo Securities market analyst Koichi Seki said.
But the Japanese market showed some resistance on the downside.
"Given that some buying emerged after the Nikkei 225 index slipped below the 11,500 points level, the market may have passed through the very worst phase of the latest downturn," Chuo's Seki said.
Oil refiners and base material producers were broadly lower, with the largest refiner Nippon Oil slipping 17 yen or 2.2 pct to 751 and Cosmo Oil off 11 yen or 3.1 pct at 343.
Japan's largest steel maker Nippon Steel dropped 5 yen or 1.9 pct to 263 and the second-largest JFE tumbled 80 yen or 2.7 pct to 2,910.
In the non-ferrous group, Nippon Mining Holding fell 11 yen or 1,8 pct to 602 and Sumitomo Metal Mining lost 6 yen or 0.8 pct to 780.
High-techs were broadly lower, with the world's largest maker of testers for semiconductor chips and flat panel monitors, Advantest, falling 170 yen or 2.0 pct to 8,150 while the world's largest stepper maker, Nikon, was off 45 yen or 3.6 pct at 1,187.
Tokyo Electron -- the world's second-largest maker of semiconductor chip and flat panel display making equipment -- fell 50 yen or 0.8 pct to 6,060.
"Caution is growing stronger (on stocks in the electronics sector) ahead of the release Friday of first quarter results by Samsung Electronics," Toyo's Numata said.
"Investors are waiting to see if there will be any implications from that result on the trend for global technology shares," he added.
Kanebo closed down 200 yen or 15.5 pct at 1,091 after the struggling textile maker said it had inflated its earnings by a total of 215 bln yen between the year to March 2000 and the year to March 2004.
As a result of the re-statement of past results, Kanebo said it had had negative net worth for nine straight years, placing it in violation of listing standards.
Lawson Inc was up 90 yen or 2.2 pct at 4,100, after the firm announced yesterday it posted a record net profit in the year to February 2005.
"The result showed the solid nature of profit growth in the convenience store industry despite stiffer competition posed by shopping mall operators," said Masafumi Shoda, analyst at Nomura Securities.
"And as its new strategy which focuses on convenience stores with eat-in space is also doing ok, we have a bright outlook for the share price performance of Lawson," he said.
Fuji Television Network finished down 6,000 yen or 2.5 pct at 238,000 following a report it may spend 160-200 bln yen in settling a takeover battle peacefully with Internet portal Livedoor Co.
Nippon Broadcasting System fell 250 yen or 4.1 pct to 5,830, while Livedoor was down 7 yen or 2.1 pct at 324.
Yasuhiko.Seki@xfn.com
ys/mb
For more information and to contact AFX: www.afxnews.com and www.afxpress.com