April 19, 2013 / 1:45 AM / 5 years ago

Nikkei turns down as Wall Street sours mood; caution over G20 meeting

* Investors still upbeat on Japanese equities
    * Focus turns to outcome of G20 meeting - traders
    * Internet-related stocks attract buying from retail
investors - trader

    By Ayai Tomisawa
    TOKYO, April 19 (Reuters) - Japan's Nikkei share average
edged down on Friday as negative sentiment from Wall Street
outweighed the downward trend in the yen, but losses were
contained as the market looked for direction from a meeting of
the Group of 20 countries.
    The Nikkei fell 0.1 percent to 13,206.29 in
mid-morning trade after opening higher.
    On Thursday, U.S. stocks were dragged down by disappointing
forecasts by companies including eBay, while more soft
data added to worries over the recovery in the world's largest
economy.
    Still, investors remained upbeat about Japanese equities as
the yen slipped against the dollar in a sign that investors
expect little criticism of Japan's massive monetary easing
campaign from the G20 meeting that began on Thursday.
    The dollar last traded at 98.14 yen, and if the yen
weakens further, the Nikkei may recover its 5-day moving average
of 13,261.70, analysts said. The dollar rose to a four-year high
of close to a 100 yen last week.
    "If all goes well with Japan not facing criticism of its
aggressive monetary policy by its international partners, the
yen may weaken further and large-cap stocks may be bought," said
Yoshiyuki Kondo, an analyst at Daiwa Securities. 
    "For the time being there is still uncertainty so it is
difficult to buy large-cap stocks but small shares are being
bought."
    He cited Internet-related shares such as CyberAgent Inc
 and Colopl Inc, which have been popular and
gained 1.8 percent and 8.6 percent, respectively.
   Exporters were mixed. Toyota Motor Corp dropped 0.6
percent while Honda Motor Co shed 1.3 percent. Sony
Corp gained 0.7 percent and Komatsu Ltd added
1.5 percent.
    The Nikkei has gained over 50 percent since November when
Shinzo Abe, who became prime minister in December, called for
bold fiscal and monetary expansionary policies to revive the
economy and end stubborn deflation. 
    While institutional investors have taken a wait-and-see
approach after the market's surge to nearly five-year high last
week, "retail investors are finding opportunities in stocks with
 extraordinary growth" such as gaming and Internet-related
sectors, a Tokyo-based trader said.
    The broader Topix fell 0.5 percent to 1,117.02.
    Analysts said investors have also started focusing on
earnings-related news as Japanese companies begin releasing
their full-year results next week.
    JX Holdings Inc shed 1.9 percent after the Nikkei
newspaper said the petroleum refiner's net profit for the year
ended March 31 appeared to have fallen below the company's
forecast.

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