Japan’s shares end longest winning streak since 1988

Japan’s Nikkei has ended its longest winning streak since 1988, closing lower after 12 straight days of gains.

The benchmark Nikkei 225 index closed down 0.13% at 20,543.19.

Shares in troubled Japanese car parts maker, Takata, closed down more than 1% as it continued to face problems over its faulty airbags.

The firm said it was intending to replace a chemical used in its airbags, as it tries to fix the fault that led to six deaths and multiple injuries.

Kevin Kennedy, Takata’s executive vice president, is due to be questioned by the US Congress on Tuesday about the fault.

On the currency markets, the US dollar continued to rise against the yen, and at one point climbed to above 125 yen for the first time since late 2002.

A US survey showing manufacturing picked up pace in May, together with numbers that showed a strong jump in US construction spending, helped to push the dollar higher.

A weaker yen against the dollar is good news for Japan’s big exporters as it lowers the cost of their goods for overseas consumers.

Weakness across Asia

In Australia, the benchmark S&P/ASX 200 index closed down 1.73% – its biggest fall for four weeks.

As widely expected, the Reserve Bank of Australia kept its rates on hold at an historic low of 2%, but analysts said the decision had weighed on investor sentiment.

In South Korea, the benchmark Kospi index closed down 1.13% at 2,078.64.

Investor sentiment may be dented this week, some analysts said, after the country recorded its first deaths from Middle East Respiratory Syndrome, or Mers.

South Korea said it is monitoring close to seven hundred people for possible infection, while the country’s health ministry said a 58-year-old woman and a 71-year-old man had died from the illness.

In China, the Shanghai Composite was up 0.47% at 4,851.65 in afternoon trade after closing up nearly 5% on Monday.

In Hong Kong, the benchmark Hang Seng index was 0.64% lower at 27,421.83 points after closing slightly up a day earlier.

A raft of initial share offerings this week is expected to draw liquidity from the market in China. However, analysts said they were not expecting the volatility of last week when mainland shares fell some 6%.

Source: BBC News