Shares in Tokyo closed lower for the second time in three days this morning as concern over the yen continued to weigh on the market. The Nikkei 225 fell 197.85 points, or 1.8pc, to 10,665.15, while the broader-based TOPIX index of all First Section shares declined 13.38 points, or 1.3pc, to 1,044.57. Overnight, the dollar briefly tumbled below 106 yen before bouncing back to 106.11.
Investors also sold stocks in the wake of Intel's earnings results which, though in line with expectations, were accompanied by a cautious outlook for capital spending. The world's largest chipmaker said capital spending is expected to be between USD3.6bn and USD4.0bn this year, compared to USD3.7bn in 2003. Semiconductor stocks in Tokyo declined after the comments, with Oki Electric down 3.7pc, Hitachi down 2.8pc and Toshiba slipping 2.6pc. Japanese semiconductor processing equipment makers also fell, as did companies such as Advantest, which makes chip testing equipment. //www.fxcentre.com