Japanese shares down 0.15 per cent on profit-taking

January 07, 2011 | 11:35

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Japanese shares shed 0.15 per cent in morning trade Friday, as traders sold resource-linked stocks after commodity prices plunged overnight, dealers said.

The headline Nikkei index at the Tokyo Stock Exchange lost 15.39 points to 10,514.37 by the lunch break. The Topix index of all first section shares declined 0.02 per cent or 0.15 points to 924.36.

Oil prices tumbled to their lowest level in more than two weeks, reversing strong gains earlier in the week, and gold edged lower overnight, as the dollar gained traction.

But Kazuhiro Takahashi, general manager of investment strategy at Daiwa Securities Capital Markets, said the market's downside remained supported on solid buying by foreign investors.

"The story of Japanese stock buying has not changed," Takahashi told Dow Jones Newswires, noting that many investors were simply reluctant to make large bets ahead of US nonfarm payrolls data due later in the day.

Resource-linked shares were generally lower, with Japan Petroleum Exploration down 1.37 per cent at 3,225 yen, Inpex off 1.51 per cent at 489,000, and Mitsubishi Corp. 1.51 per cent lower at 2,337.

JVC Kenwood Holdings rose 14.98 per cent to 445 as investors exited short positions after the company announced a much-anticipated equity capital increase plan.

AFP

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