Nikkei falls for 6th day on strong yen, concerns on Ukraine

Wed Aug 6, 2014 10:03pm EDT

* Exporters weak hurt by strong yen
    * Declines limited as more people think strong yen was
caused by fat-finger trade -analyst

    By Ayai Tomisawa
    TOKYO, Aug 7 (Reuters) - Japan's Nikkei share average edged
down on Thursday morning in choppy trade, extending its declines
into a sixth day as the strong yen dragged down exporters, while
rising tensions in Ukraine dulled risk appetite.
    But losses were limited as investors started digesting that
the dollar's sharp fall against the yen overnight could have
been an accidental "fat-finger" trade.
    The Nikkei dropped 0.1 percent to 15,143.64 in mid-morning
trade after falling to as low as 15,085.69, the lowest since
June 30. It also briefly flirted with positive territory.
    "Investors seem to have reached a conclusion that it was a
fat-finger trade, not a trade which accurately reflected its
real level," said Takuya Takahashi, an analyst at Daiwa
Securities.
    The dollar suddenly dropped as far as 101.76 yen 
before Asian market hours, from around 102.30 in a matter of a
few minutes, prompting talk of a fat-finger trade, or a large
order that created some indigestion. 
    "The Japanese market may not fall seriously as it is also
supported by buying of companies which reported strong results,"
Takahashi said.
    As of Aug 5, more than 150 of 200 companies selected by
Daiwa Securities reported their April-June results, and their
pretax profits rose 13 percent on-year, he said.
    Square Enix Holdings jumped 12 percent to 2,315
yen, the highest since March after it hiked its profit and sales
forecasts form its April-September period.
    Renesas Electronics Corp soared 4.1 percent after
its operating profit for the first quarter nearly tripled to
26.9 billion yen.
    Exporters weakened, with Sony Corp falling 1.4
percent, Panasonic Corp declining 0.9 percent and
Nissan Motor Co dropping 0.8 percent.
    The broader Topix dropped 0.1 percent to 1,249.70,
and the new JPX-Nikkei Index 400 fell 0.2 percent to
11,370.55.

 (Editing by Eric Meijer)