5:23 AM EST June 26, 2008
The Associated Press
TOKYO Japanese stocks edged down Thursday, extending losses for a sixth day as investors traded with caution following the Federal Reserve's mixed assessment of the U.S. economy. The benchmark Nikkei 225 index slipped 7.6 points, or 0.05 percent, to 13,822.32. "Sentiment was sluggish as the Fed's statement on the state of the U.S. economy was ambiguous," said Kazuki Miyazawa, market analyst at Daiwa Securities SMBC Co. Ltd. On Wednesday, the U.S. central bank said after a two-day meeting it was keeping its benchmark federal funds rate at 2 percent in a widely expected move. The Fed also issued a mixed assessment of the world's largest economy. It said there were a few positive economic signs, including "some firming in household spending," but argued rising energy prices were likely to limit growth. "Investors were reluctant to chase gains due to ongoing concern over a slump in the U.S. economy," Miyazawa said. Japan's top oil refiner Nippon Oil Corp. dropped 3.1 percent to 685 yen following a fall in oil prices on a report that showed U.S. stockpiles of oil and fuel were larger than expected. Oil prices stood at $134.35 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore Thursday after falling more than $2 in New York Wednesday. Japan's top automaker, Toyota Motor Corp., rose 0.2 percent to 5,170 yen. Its rival Nissan Motor Co. edged up 0.4 percent to 903 yen. Sony Corp. rose 2.8 percent to 5,060 yen. The company on Thursday outlined its strategy for growth geared at regaining its lead in TVs, wiping out the red ink in video games and investing 1.8 trillion yen ($16.7 billion) in future technology. The Topix index of all Tokyo Stock Exchange First Section issues fell 1.29 points, or 0.10 percent, to 1,344.79. In currency trading, the dollar stood at 108.14 yen mid-afternoon in Tokyo, up from 107.89 yen in New York late Wednesday. The euro stood at $1.5637 mid-afternoon in Tokyo compared with $1.5664 in New York. The greenback stood at 1.3660 Singapore dollars, and 33.35 Thai baht. |
