Japanese shares fall on worries over rising costs, yen’s weakness

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TOKYO, Nov 17 (Businesshala) – Japanese stocks reversed early gains on Wednesday as concerns over rising costs and gains of a weaker yen made by technology heavyweights followed a strong finish on Wall Street.

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Shares of the Nikkei average fell 0.4% to 29,679.68 by 0201 GMT, while the broader top was down 0.55% to 2,039.51. In the previous session, the Nikkei was up 0.3% and Topix was up 0.2%.

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All three major Wall Street indices closed overnight on the back of upbeat retail sales data.

“Weakness of the yen against the dollar is good for some companies, but also a negative factor for others. Now, investors are focusing on the latter, especially as material costs are rising,” said a senior at Mizuho Securities. Technical analyst Yutaka Miura said.

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“But the decline in Japanese stocks has been limited by the solid performance of the US market.”

The dollar rose to a 16-month high overnight after data showed US consumers saw rising prices and increased retail sales over the past month.

Staffing agency Recruit Holdings dragged both Nikkei and Topix the most, falling 5.15%, while air-conditioning maker Daikin Industries was down 1.96% and uniqlo clothing chain operator Fast Retailing fell 1%.

Technology heavyweights tracked the Nasdaq higher, with Tokyo Electron rising 2.46%, SoftBank Group 0.6% and Advantest up 2.15%.

Oil refiner Idemitsu Kosan advanced 1.48% after the industry ministry said it was considering a measure to cushion the sharp rise in petrol prices to allow oil refiners to cap wholesale prices with subsidies . (Editing by Subhranshu Sahu)

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