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LEAD: Tokyo stocks slip on Europe woes and yen, but dip-buying trims losses+
(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, Feb. 9 -- (Kyodo) _ (EDS: ADDING DETAILS AND PRICES)
Tokyo stocks edged down Tuesday to a new two-month closing low on continued jitters about sovereign debt problems in Europe and the persistent strength of the yen, although losses were limited by support from dip-buying including of recall-mired Toyota Motor.
After brief swings into positive territory, the 225-issue Nikkei Stock Average ended down 18.92 points, or 0.19 percent, from Monday at 9,932.90, its lowest closing level since Dec. 10 and extending its losing streak to four days. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 1.44 points, or 0.16 percent, to 881.57, also a two-month low.
By sector, pharmaceuticals saw the largest percentage decrease, followed by land transport and warehouse. The auto, sea transport and trading house sectors were among the major gainers.
Stocks had a weak start in Tokyo after Wall Street succumbed overnight to continued risk aversion, as equities are considered riskier than assets such as bonds, amid heightened worries about the debt crises in Europe. Foreign investors account for about 50 percent of trading on the TSE.
"The troubles such as those in Greece could deteriorate further so the situation remains unpredictable...and investors are now waiting for tonight's testimony at Congress by U.S. Federal Reserve Chairman Ben Bernanke, as well as an economic crisis meeting of European leaders this week," said Yumi Nishimura, a senior equity market analyst at Daiwa Securities Capital Markets Co.
But losses were gradually trimmed as some investors bought on the dip stocks that they deemed had been oversold, helping to lift the Nikkei briefly into positive territory.
Buybacks of Toyota Motor and affiliated stocks in particular provided support to the benchmark index after the auto giant lost more than a fifth of its share value in just over three weeks, a market analyst at a Japanese brokerage said.
Toyota Motor, the day's value leader, rose 95 yen, or about 3 percent, to 3,375 yen. Among group affiliates, car seat maker Toyota Boshoku gained almost 2 percent, while top-ranked car electronic parts maker Denso was up about 1 percent.
Toyota officially filed a recall Tuesday for four hybrid models including the latest version of its best-selling Prius to repair brake problems, with Toyota President Akio Toyoda offering a fresh apology at a news conference held soon after stock trading closed.
Pressure on other exporter shares eased slightly in the afternoon as the yen's continued strengthening took a breather, with the dollar trading near the mid-89 yen level and the euro around the mid-122 yen zone.
Nishimura said, however, that the market remains wary that prolonged weakness of the dollar below the 90 yen line, at which many Japanese exporters have set their average assumed exchange rates, could affect corporate earnings as the possibility remains that investors may buy the safe-haven Japanese currency in any flight from risk amid talks of U.S. banking regulatory reforms.
On the First Section, declining issues outnumbered advancing issues 968 to 570, with 142 others remaining unchanged.
Koito Mfg. sank almost 10 percent, or 138 yen, to 1,271 yen after its subsidiary Koito Industries Ltd., an airplane seat maker, received a warning Monday from the transport ministry over fabricated fire resistance and strength data on seats for over 30 carriers worldwide.
Among exporters, Pioneer plunged almost 9 percent, or 33 yen, to 349 yen, and NEC lost over 1 percent. Meanwhile, major automakers erased initial losses, with Nissan Motor up over 2 percent and Honda Motor around 1 percent.
Volume leader Mizuho Financial Group climbed 2 yen, or over 1 percent, to 175 yen.
Trading volume on the main section came to 2,074.71 million shares, up from Monday's 1,996.63 million.
The TSE's Second Section index was down 7.16 points, or 0.34 percent, to 2,069.25 on a volume of 52.16 million shares. On the Osaka Securities Exchange, the near-term March Nikkei 225 index futures contract was down 20 points at 9,940.
(c) 2010 Kyodo News International, Inc.
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