Nikkei falls to more than 2-month short on Brexit issues

* Exporters extend declines on strong yen * Financials drop, financiers brace for Fed, BOJ By Ayai Tomisawa TOKYO, June 14 Japanese stocks was up to more than
a two-month lows in choppy trade on Tuesday, pressed by
growing issues that a referendum next week might press Britain
out of the European Union. The Nikkei share average dropped 1.3 percent to
15,817.74 in midmorning trade after falling to as low as
15,796.56 earlier, the weakest level because April 12. The index
briefly popped into the black in opening offers, but any hope it
might recover a few of Monday’s sharp 3.5 percent slide was
shortlived. A relatively firm yen kept pressure on exporters. The
Japanese currency was at 105.975 versus the dollar, near
Monday’s six-week high of 105.735 yen. A break of that level
could lead to a test of its 18-month high of 105.55 set on May
3.

Toyota Motor Corp dropped 1.1 percent, Honda Motor
Co fell 1.6 percent and Nissan Motor Co.
decreased 1.1 percent. Overall, belief stayed weak in tandem with a selloff in.
international riskier possessions as recent surveys recommended the June 23.
mandate could see Britain exiting the European Union, traders.
said.

” Short-term hedge funds have actually started banking on Brexit, and.
futures players will likely control the marketplace’s relocation today,”.
stated Norihiro Fujito, senior investment strategist at Mitsubishi.
UFJ Morgan Stanley Securities. Financials likewise lost ground as investors braced for secret.
reserve bank conferences today, consisting of the Federal Reserve.
over Tuesday and Wednesday, and the Bank of Japan on.
Wednesday-Thursday. Mitsubishi UFJ Financial Group shed 2.0 percent,.
Mizuho Financial Group dropped 1.6 percent and Sumitomo.
Mitsui Financial Group decreased 2.0 percent.

While the Fed is expected to keep U.S. interest rates steady.
at today’s meeting, markets will be keenly lapping up its.
policy statement for hints on when the next tightening up might.
take place. The BOJ is expected to keep policy stable, though the yen’s.
restored strength is making its task hard. Bucking the weak point, garments store operator Shimamura Co.
Ltd gained more than 4 percent after the Nikkei.
business daily reported that the company’s group operating.
earnings likely jumped 30 percent for the March-May duration. The wider Topix dropped 1.3 percent to 1,267.82,.
and the JPX-Nikkei Index 400 shed 1.2 percent to.
11,426.63.

( Modifying by Shri Navaratnam).

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