Nikkei: 10,360.30 (-118.32) Hang Seng: 23, 617.00 (-162.60) Shanghai Comp: 2,752.75 (+3.60)THE NIKKEI average fell 1 per cent yesterday after a cut to Japan's sovereign debt rating.
Selling of Nikkei 225 futures also contributed to weakness in the cash market, where financials led declines on concerns they might be exposed to higher procurement costs.
Standard Poor’s cut Japan’s long-term debt rating to AA minus on concerns that the government lacked a coherent plan to tackle mounting debt. With Japanese earnings season having begun in earnest, companies with downbeat results or outlooks.
Chip equipment maker Advantest plunged 7.4 per cent to ¥1,709 and steelmaker JFE Holdings fell 3.3 per cent to ¥2,643 after it slashed its annual profit forecast, but construction machinery maker Komatsu climbed.
The benchmark Nikkei ended the day down 1.13 per cent but rose 0.8 per cent on the week. The broader Topix fell 1.1 per cent.
Banks underperformed, with Mitsubishi UFJ Financial Group falling 2.7 per cent to ¥434, Mizuho Financial Group dropping 1.2 per cent to ¥162 and Sumitomo Mitsui Financial Group shedding 1.6 per cent to ¥2,870 yen. – (Reuters)
