TOKYO, Aug 20: Japanese share prices closed 0.1 per cent lower on Thursday on profit-taking after two days of rallies, brokers said. But share prices were pulled off their lows from mid-afternoon by the yen's rally past 143 to the dollar, which blocked profit-taking from accelerating further, brokers said.The Nikkei-225 fell 14.93 points to end at 15,391.41. The Topix index of all issues on the first section closed down 2.04 points at 1,181.67. Stocks opened higher on public fund buying of futures but gains were quickly eroded by profit-taking by mid-morning, brokers said. Bank shares were bought at the start of the session on a report that public money could be used to rescue troubled Long-Term Credit Bank of Japan Co Ltd, but the buying was short-lived, brokers said.
The Nihon Keizai Shimbun said the government and the Bank of Japan could use the funds to back up LTCB's planned merger with Sumitomo Trust and Banking Co Ltd. Selling sentiment dominated the market in mid-afternoon, but prices recovered moderately in late trading on the yen's rally, brokers said. The Japanese currency rose to a high of 142.55 yen to the dollar at one point in mid-afternoon trading following a report that Haruhiko Kuroda, International Finance Bureau chief of the Finance Ministry, indicated Japan might intervene to prop up the weak yen.
Selected international blue-chips remained under pressure from overseas investors, reflecting underlying concerns about earnings prospects, brokers said. "After all, foreign investors have no interest in buying into Japanese equities, but, on the other hand, they are also feeling that the chance of a further rebound is growing, which is preventing them from turning active sellers."
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