Date: Thursday 15 Jul 2010
The Nikkei turned lower on Thursday as investors mulled the Fed’s concerns about the US economic recovery and weaker than expected retail sales.Traders also digested data showed a cooling Chinese economy. Official data showed China's annual growth eased to 10.3% in the second quarter.
Figures showed inflation also eased in June from the month before, an indication that China might refrain from further policy tightening.
Among equities carmakers fell sharply after the previous session’s rally. Honda fell 2.1%, Nissan dropped 3% while Toyota lost 2.6% to 3,165 yen.
Exporters and tech stocks also came under pressure after recent gains, the Fed’s cautious outlook and as the yen strengthened against major currencies.
The benchmark Nikkei 225 index closed down 109 points at 9,686 in Tokyo.
The Hang Seng retreated, reversing from earlier gains, as banks spearheaded the decline. Bank of China declined 1%, ICBC lost 1.9% while HSBC fell 0.13% in Hong Kong.
Shares in energy giant Cnooc tumbled 1.9% to HK$12.50 as crude futures fell.
On a brighter note property plays did well with shares in China Resources Land rising 1.1% and China Overseas Land & Investment gaining 0.6%.The Hang Seng fell 305 points to 20,256 in Hong Kong.
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