Nikkei falters as exporters sold, JAL sinks
TOKYO, Nov 24 (Reuters) - Japan's Nikkei average lost 0.5 percent on Tuesday as exporters fell on a stronger yen, though losses were braked as shares such as Mitsubishi Corp (8058.T) gained on higher commodities prices. Japan Airlines Corp (9205.T) fell as much as 9.5 percent to a record low on investors worries the struggling airline could face bankruptcy unless it secures an agreement to cut staff pensions.
JAL's stock price slide also follows news that Mitsui & Co (8031.T) sold its entire stake of 11.73 million shares in JAL during the six months to Sept. 30. A spokesman for the trading house did not say why it unloaded its shares.
A raft of Japan-specific negative factors, such as a recent flurry of equity financing and uncertainty about the economic policies of the new government, have kept the Nikkei weak despite gains on Wall Street overnight that sent the Dow to a 13-month high.
In light trade, the benchmark Nikkei .N225 lost 50.32 points by midday to 9,447.36, while the broader Topix fell 0.5 percent to 834.74 yen. Tokyo markets were closed for a holiday on Monday.
"There's worry about oversupply, worry about the yen's strength and worry about political uncertainty," said Hiroichi Nishi, general manager at the equity division of Nikko Cordial Securities.
"But at the same time a number of technical factors show that the Nikkei has been oversold, and selling by overseas hedge funds is also likely to quiet down a bit." (Reporting by Elaine Lies; Editing by Michael Watson) ((elaine.lies@thomsonreuters.com; +81 3 6441 1807; Reuters Messaging:elaine.lies.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit topnews.session.rservices.com * BridgeStation: view story .134 * Reuters Plus: from your WebDSS screen For more information on Top News, visit topnews.reuters.com))
