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Nikkei fails to arrest slide as economic worries offset US relief
October 17, 2014 / 2:34 AM / 3 years ago

Nikkei fails to arrest slide as economic worries offset US relief

* Japanese stocks down 0.2 percent
    * Investors cautious on Europe; eye BOJ for response
    * Recruit shares rise further after strong debut

    By Thomas Wilson
    TOKYO, Oct 17 (Reuters) - Japanese stocks declined on Friday
morning, failing to arrest this week's sharp slide as investor
nervousness about slowing global growth eclipsed relief over a
set of upbeat data from the United States.
     The Nikkei fell 0.2 percent to 14,714.32 at 0128
GMT and is on track to post its biggest weekly fall since early
August. It is down 3.8 percent for the week so far - one of the
worst performing in this period globally as investors fretted
about the health of the world economy. 
    Wall Street calmed somewhat on Thursday after data showed a
sharp jump in U.S. industrial production last month, and the
number of Americans filing claims for unemployment benefit fell
to a 14-year low.  [ID: nL2N0SB0UW]
    The figures helped the dollar recover a little, pushing the
yen down to 106.34, though that did not help exporter
shares much in part due to the underlying concerns on the global
    Investors were also cautious over signs of more financial
and economic stress in Europe. Greek, Spanish and Italian bond
yields rose on Thursday, sparking fears of a flare up in the 
eurozone's debt crisis - dormant for two years. [ID: nL6N0SB1S6]
    "I think the market is going through a healthy correction
and the market will soon rebound. But we need to be cautious on
Europe as Greek bond yields have shot up," said Hiroyuki Nakai,
chief strategist at Tokai Tokyo Research Centre.
    Financial shares underperformed, with bank shares dropping
1.4 percent. SMFG fell 2.1 percent while
Mitsubishi UFJ Financial Group shed 1.6 percent.
    Exporter shares were mixed. Toyota Motor Co fell
1.6 percent and Honda Motor rose 0.1 percent.
    With little in the way of market moving data out of Japan on
Friday, investors continue to watch the BOJ for signs of how it
may respond to the global turmoil. 
    The Bank of Japan appears set to resist pressure for more
stimulus measures or to accept that its inflation target is
unrealistically high. [ID: nL3N0SA3ZL]
    But some expressed confidence that Governor Haruhiko Kuroda
would act if necessary even if the BOJ stands pat at its next
meeting on Oct. 31.
    "If they don't act, it will at some point be bad. But Kuroda
is the person who you can rely on to not be behind the curve"
said an asset manager in Hong Kong.  
    Outperforming the market was staffing and media firm Recruit
, whose shares rose 3.6 percent.  The company debuted
strongly on the Tokyo bourse on Thursday, highlighting a
investor hunger for a slice of a large Japanese company with
strong growth prospects.[ID: nL3N0SB04A]
    The broader Topix was down 0.4 percent at 1,191.09,
while the new JPX-Nikkei Index 400 fell to

 (Reporting by Thomas Wilson)

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