Japanese stocks fell, reversing gains as a strengthening yen weighed on the profit outlook for exporters. Energy shares climbed as oil advanced for a fourth day.
The Topix index lost 0.7 percent to 1,523.62 at the close in Tokyo after rising as much as 0.9 percent as the yen added 0.3 percent to 120.57 per dollar. The Nikkei 225 Stock Average dropped 0.5 percent to 18,789.69.
“There aren’t a lot of specific factors” for market moves today, said Kuninobu Takeuchi, Tokyo-based executive portfolio manager at DIAM Co. “The Bank of Japan’s announcement last week had the opposite effect,” making investors think the central bank is running out of tools to expand easing, he said. “A stronger currency will be an overhang for Japanese stocks.”
The BOJ unveiled tweaks to its stimulus program on Dec. 18, including lengthening the maturity of government bonds it buys and creating a program to buy exchange-traded funds that target companies making capital investments. The announcement disappointed investors, with the Topix falling 1.8 percent and the yen jumping 1.1 percent against the dollar that day.
Japan’s currency has strengthened three of four trading days this week, sapping the profit outlook at exporters. Shimano Inc., a bicycle-goods maker that gets 90 percent of sales abroad, slumped 3 percent. Mitsubishi Motors Corp. lost 2 percent, while Toyota Motor Corp. fell 1.2 percent.
E-mini futures on the Standard & Poor’s 500 Index slipped 0.2 percent after the underlying measure rose 1.2 percent on Wednesday, bringing its three-day gain to 2.9 percent. The index erased its decline for the year as energy and raw material producers rallied.
US crude supplies fell 5.88 million barrels last week, the biggest drop since June, government data showed Wednesday. The drop in inventories helped oil stage its biggest rebound since OPEC effectively abandoned output limits at a meeting this month.
Resource-related stocks were among the biggest gainers in the Topix, with Nippon Steel & Sumitomo Metal Corp. and JX Holdings Inc. each rising at least 1.8 percent. Energy explorer Inpex Corp. advanced for a third day, adding 2 percent. Airlines led losses on prospects for higher fuel costs, with ANA Holdings Inc. dropping 1.9 percent.
Nippon Suisan Kaisha Ltd. surged 16 percent after Mizuho Financial Group Inc. and SMBC Nikko Securities Inc. upgraded their ratings on the seafood producer’s stock. SMBC Nikko cited the company’s efforts to shrink unprofitable businesses.
Fishing company Maruha Nichiro Corp. climbed 3.7 percent, while seafood distributor Kyokuyo Co. added 3.1 percent. The Topix Fishery, Agriculture, & Forestry Index is up by 14 percent in December, the best performer among the 33 industry groups.
Takata Corp. tumbled 4.8 percent after American regulators linked the troubled air-bag maker to an eighth death in the U.S. Shares have fallen by almost half this year.
Pachinko-machine makers dropped after Mitsubishi UFJ Morgan Stanley Securities Co. said proposed rule changes could weigh on industry profits in the short term. Heiwa Corp. slumped 4.6 percent, while Konami Holdings Corp. tumbled 4.7 percent.
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