* Benchmark falls 0.8 pct, but holds above 13-wk average
* Investors jittery ahead of key Spanish auction
* Weaker yen supports; Toyota up 0.9 pct
* Nippon Sheet Glass sheds 7 pct after American CEO quits
By Mari Saito
TOKYO, April 19 (Reuters) – Japan’s Nikkei average slipped
0.8 percent on Thursday, reversing the previous session’s sharp
gains as investors avoided risk ahead of a closely watched
Spanish bond auction later in the day.
Nippon Sheet Glass was one of the top percentage
losers on the main board, shedding 7 percent after its American
executive quit following “fundamental disagreements” with the
company’s board on strategy.
The stock was traded three times as much in the session than
its average 90-day volume.
Also falling in high volumes were industrial robot maker
Fanuc Corp, Sony Corp and Honda Motor Co
, down between 0.9 and 1.2 percent.
The benchmark Nikkei fell 78.88 points to 9,588.38
after a 2.1 percent rally in the previous session, but still
managed to end above its 13-week moving average near 9,577.
“The market is waiting to see what happens tonight with the
Spanish bond auction as well as earnings reports and housing
sales statistics from the United States,” said Masayuki Doshida,
senior market analyst at Rakuten Securities.
Spain is due to sell up to 2.5 billion euros of two- and
10-year bonds later in the day after drawing
stronger-than-expected demand for shorter-dated debt earlier
this week.
The country reignited concerns over the euro zone financial
crisis this week after the yield on its benchmark 10-year
government bond climbed above 6 percent and the cost of insuring
its debt against default spiked to a record high on Monday.
“There are no positive factors right now. We’re not seeing
particularly strong data that suggests a robust economy in the
U.S., corporate results are mixed, and we’re not seeing anything
that suggest demand from China is growing,” said Ryota Sakagami,
chief equity strategist at SMBC Nikko Securities.
Despite the resurging fears over Europe, strategists said
there was firm appetite for companies that are likely to post
strong earnings this fiscal year.
“Long-only investors say their portfolios are performing
well because I think the market is shifting from one that sees
even tattered stocks rise to one that is far more selective
based on value and earnings outlook,” said Sakagami.
The weaker yen, with the dollar last traded at 81.44 yen
, also underpinned sentiment on Thursday and helped major
exporters Toyota Motor Co and construction machinery
maker Komatsu Ltd outperform the index with gains of
0.9 and 0.5 percent respectively.
The broader Topix eased 0.6 percent to 814.13.
Trading volume was thin, with 1.63 billion shares changing
hands on the main board, slipping slightly from 1.67 billion on
Wednesday.
GOING UP?
The Nikkei has lost 4.9 percent so far in April, after
soaring more than 19 percent in the first quarter.
But Nomura wrote in a note to clients on Thursday that a
correction since March 27 was about to end, saying that the
Nikkei was entering a rebound and heading towards its 25-day
moving average near 9,864.
The broker said if the index regained its 25-day average, it
could attempt a move back above 10,000.
But market participants said the Bank of Japan’s meeting on
April 27 was unlikely to provide any catalyst to jolt the
benchmark higher.
“It’s obviously no longer a surprise if they act. It would
be a negative surprise if they didn’t and it would be in line if
they do step up asset buying,” said Sakagami at SMBC Nikko.
Bucking the overall trend, Yamaha Motor Co Ltd
jumped 2.9 percent after JP Morgan raised its price target on
the company, saying it expected January-March results to be
strong.
JP Morgan also lifted its price target on Hitachi Ltd
, which rose 2.5 percent and topped the main board as
the heaviest traded stock by turnover.
