“Japanese shares declined, with the Topix index deepening its correction, after Prime Minister Shinzo Abe’s speech on the country’s growth strategy disappointed investors and the yen strengthened.
Exporters such as Toyota Motor Corp. (7203) and Sony Corp. fell. Financial shares including brokerages, insurers and banks dropped. Tokyo Electric Power Co., also known as Tepco, led utilities lower after Abe failed to mention restarting the nation’s nuclear plants. Dentsu Inc., which has exclusive Asian broadcast rights for the 2014 World Cup, jumped 2.5 percent asJapan became the first team to qualify for the soccer tournament.
The Topix fell 3.2 percent to 1,090.03 at the close of trading in Tokyo, after initially rising as much as 1.2 in the afternoon session when Abe started his speech. The Nikkei 225 Stock Average lost 3.8 percent to 13,014.87, with volume 5.7 percent below the 30-day average. The yen gained to 99.59 per dollar after weakening to as much as 100.46 earlier.
“We’re going to have to reduce our expectations for Abenomics,” said Ayako Sera, a strategist at Sumitomo Mitsui Trust Bank Ltd., which has the equivalent of $325 billion in assets. “The initiatives are too small. The direction is right but the comments are all long-term. It looks like things are going to move too slowly.”
Abe’s speech outlined his growth strategy, the “third arrow” of an economic revival plan that seeks to build on his first two arrows, fiscal and monetary stimulus.
