April 5, 2011 / 6:40 AM / 8 years ago

Nikkei falls 1 pct as rebound stalls, TEPCO hits record low

 * Tokyo Electric falls to all-time low
 * Post-quake rebound has run its course - analyst
 * Chipmakers lower, in line with U.S. peers
 By Chikafumi Hodo and Antoni Slodkowski	
 TOKYO, April 5 (Reuters) - Japan's Nikkei average slipped
more than 1 percent on Tuesday with the mood soured by Tokyo
Electric Power's fall to an all-time low, while the market's
post-quake rebound looks to have run its course.	
 The Nikkei's climb over the previous two sessions took it
near its 200-day moving average at 9,822 but that level and the
9,800 line proved to be stiff resistance for a market still
troubled by uncertainty over the exact impact of the massive
March 11 earthquake.	
 Shares of Tokyo Electric Power extended losses in
afternoon trade on Tuesday, tumbling by their daily limit of 80
yen, or 18.1 percent, to a record low of 362 yen amid mounting
investor concern about the financial burden of dealing with a
tsunami-hit nuclear power plant.[ID:nL3E7F504Y]	
 "There was a sharp drop in the Nikkei and we've seen a swift
rebound. That's normal. But from now on people will start
pricing in fundamentals and that will push the market gradually
lower, so we'll see more moves like today in the coming weeks,"
said Norihiro Fujito, senior investment strategist at Mitsubishi
UFJ Morgan Stanley Securities.	
 The benchmark Nikkei average closed down 1.1
percent, or 103.34 points, at 9,615.55 on Tuesday, with foreign
investors spotted heavily offloading blue-chip exporters.  	
 Toyota Motor Co shed 2.4 percent to 3,260 yen and 	
Hitachi Ltd lost 2.1 percent to 418 yen.	
 The broader Topix shed 1.5 percent to 847.16. 	
 Fujito said foreign investors were turning away from Japan
to emerging markets such as India, Indonesia and South Korea.	
 Foreigners, who account for more than 60 percent of trade on
the Tokyo bourse, bought nearly 3 trillion yen ($35.7 billion)
of Japan shares from November to March, including during dips
after the panic post-quake sell-off, but are now looking to
lighten their holdings especially in domestic-demand related
sectors such as real estate and department stores, analysts
said.	
 	
 LIGHTENING HOLDINGS	
 The real estate sector has slid about 17 percent
since the quake, compared with the Nikkei's loss of some 8
percent, on worries about a slump in demand and lower rents,
while major retailing names, such as department store
Takashimaya Co , are hovering more than 20 percent below
their pre-quake levels.	
 Japan's Yomiuri Shimbun newspaper said on Tuesday that Tokyo
Electric planned to start paying compensation to those who had
to evacuate or suffered other losses due to the nuclear power
crisis before damages have been assessed, although the utility
said nothing had been decided on compensation payouts.
[ID:nL3E7F434Q]	
 "If we think about all the people and businesses affected by
the (nuclear) accident, and the compensation that would have to
be paid, there's no way shareholders could be fully protected,"
said Fujito.	
 Chipmakers such as Elpida Memory Inc slipped after
the Philadelphia semiconductor index fell almost 1
percent and Nomura Securities maintained a neutral view on
semiconductor stocks, citing weakened demand, peak gross margins
and higher capital spending in the sector.	
 Elpida fell 4.2 percent to 1,068 yen.	
 Oil prices hit their highest since 2008 on Monday on supply
concerns, but oil-related shares such as Japan's largest oil and
gas developer, Inpex Corp , and trading houses such as
Mitsui & Co fell roughly in line with the benchmark.	
 "Resource stocks have broadly outperformed the market after
the quake and it comes as no surprise that they find it hard to
post further advances," said Hideo Arimura, senior fund manager
at Mizuho Asset Management.	
 Resource-related shares have been bolstered by climbing
commodity prices and expectations of rising demand, as Japan
rebuilds after the quake and uses more fossil fuels while it
struggles with a prolonged nuclear crisis. Inpex has surged over
16 percent since the quake.	
 But Shin Kobe Electric Machinery Co soared 12.5
percent to 1,240 yen after the Nikkei business daily reported
that it has developed a large secondary battery system that can
power factories during rolling blackouts.	
($1 = 84.040 Japanese Yen)	
	
 (Reporting by Antoni Slodkowski; Editing by Joseph Radford)	
 	
 
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