Business News

TOKYO, (APP/AFP) – Tokyo stocks were on track
for their fourth day of losses Tuesday, ahead of US and Japanese central bank meetings and Britain’s closely watched EU membership vote next week.
Japanese shares have been hit by resurgent yen, prompting another warning from officials Tuesday that Tokyo could intervene in markets to stem its rise.
Investors are becoming increasingly worried about the global economy and the possible impact of Britain quitting the 28-member EU.
Several opinion polls showed that support for a so-called Brexit was
gaining momentum ahead of the June 23 vote.
“The risk of Britain leaving the EU remains,” Takashi Ito, equity
strategist at Nomura Securities, told Bloomberg News.
“The Brexit issue has appeared in addition to an already difficult-to-move situation as we wait for central bank meetings in the US and Japan.”
The benchmark Nikkei 225 index fell 1.25 percent, or 200.29 points, to 15,818.89 by the break, following a 3.5 percent plunge on Monday.
The broader Topix index of all first-section shares dropped 1.26 percent, or 16.19 points, to 1,268.35.
Few expect any move on interest rates from the Fed this week, but observers are divided over whether the BoJ will announce more stimulus after its policy meeting ends Thursday.
The dollar slumped to 106.03 yen from 106.19 yen in New York, as traders push into a currency seen as a safe bet in times of turmoil.
A strong yen is bad for Japanese shares, however, as it hits the bottom line of firms that do business overseas.
Finance Minister Taro Aso on Tuesday repeated a warning that officials were ready to step into currency markets to tame the unit.
“Sudden and large changes (in forex rates) are not desirable…We will act firmly when necessary,” Aso told reporters.
Scandal-hit airbag maker Takata tumbled 2.48 percent to 393 yen as it said it may sell tens of millions of dollars worth of shares it owns in major Japanese automakers to raise much-needed funds.
Takata is facing lawsuits and compensation claims over an airbag defect linked to at least 13 deaths and scores of injuries globally.
But Sony ended the morning session up 0.63 percent at 2,948.5 yen after announcing a release date for its virtual-reality headset and rolled out new games for its hugely popular PlayStation 4 console.
Nippon Telegraph and Telephone (NTT) was down 0.57 percent at 4,503.0 yen after saying it had bought 59 million of its own shares worth 267 billion yen as part of a buyback plan.