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Tokyo stocks drop further after powerful Typhoon hits Japan

JIJI

Stocks lost further ground on the Tokyo Stock Exchange on Wednesday following falls in U.S. and other overseas equities.

The 225-issue Nikkei average fell 116.07 points, or 0.51 percent, to end at 22,580.83, after shedding 10.48 points Tuesday.

The Topix index of all first-section issues closed down 13.28 points, or 0.77 percent, at 1,704.96. It edged down 2.07 points the previous day.

The Nikkei and Topix extended their losing streaks to fourth and fifth sessions, respectively.

Despite the weakness, the market’s downside was underpinned by the yen’s weakening against the dollar, market sources said.

An official of a bank-linked securities firm said cosmetics makers and other companies that benefit from consumption by foreign tourists fell prey to selling on the shutdown of Kansai International Airport from Tuesday due to damage from powerful Typhoon Jebi.

“Mainstay issues met with selling apparently by nonresidents,” the official also said.

Futures-led selling triggered by declines in Chinese equities hit the Tokyo market, said Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co.

Meanwhile, many brokers agree that the market showed some resistance to downward pressure, with a view spreading that Japanese stocks are undervalued.

Falling issues outnumbered rising ones 1,297 to 701 in the TSE’s first section, while 107 issues were unchanged.

Volume rose to 1.234 billion shares from Tuesday’s 1.062 billion shares.

Cosmetics makers Shiseido, Kose and Pola Orbis met with heavy selling. Discount retail chain Don Quijote, drug store chain Matsumotokiyoshi and other foreign tourist demand-oriented issues were also downbeat.

Airlines JAL and ANA lost ground, reflecting concerns as to when Kansai International Airport will reopen, brokers said.

Other major losers included semiconductor-related Tokyo Electron and mobile phone carrier SoftBank Group.

By contrast, Fast Retailing climbed 3.16 percent after announcing Tuesday that same-store sales at its Uniqlo chain in August grew 8.8 percent from a year earlier.

Also on the plus side were automaker Suzuki and technology firm TDK.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average dropped 210 points to end at 22,560.