By Stanley White
TOKYO, Jan 8 (Reuters) - Japanese shares fell on Wednesday
after Iran launched missile attacks on U.S. forces in Iraq in
retaliation for a U.S. drone strike, but ended above session
lows amid a lack of reports of casualties.
The Nikkei index ended down 1.57% at 23,204.76. The
industrial and consumer discretionary sectors faced broad-based
declines as shares of industrial robot maker Fanuc Corp 6954.T
and apparel retailer Fast Retailing Co Ltd 9983.T fell.
In the morning session, Japanese stocks tumbled more than 2%
to reach the lowest since Nov. 21, 2019.
Shares pared losses in the afternoon session, however, after
U.S. President Donald Trump said in a tweet that "all is well".
One source told Reuters early indications were of no U.S.
casualties. Iran launched a missile attack on U.S.-led forces in Iraq,
hours after the funeral on Tuesday of an Iranian commander whose
killing in a U.S. drone strike has stoked fears of a wider war
in the Middle East.
Tehran fired more than a dozen ballistic missiles from
Iranian territory against at least two Iraqi military bases
hosting U.S.-led coalition personnel, the U.S. military said on
Tuesday.
Iran's Revolutionary Guards confirmed that they fired the
rockets in retaliation for last week's killing of Qassem
Soleimani, according to state TV.
"Investors are unwinding long positions built up last year,"
said Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ
Kokusai Asset Management Co in Tokyo.
"There is concern about what comes next in the Middle East.
Another concern is oil prices will skyrocket at a time when
Japan's manufacturing sector is weak, which is a negative for
the corporate sector."
There were 213 decliners on the Nikkei index against 11
advancers on Wednesday.
The largest percentage losses in the index were maritime
shipper Kawasaki Kisen Kaisha Ltd 9107.T down 5.93%, followed
by property developer Tokyu Fudosan Holdings Corp 3289.T down
4.11%, and chemicals maker Tosoh Corp 4042.T losing 4.07%.
The largest percentage gainers in the index were IT services
provider NEC Corp 6701.T up 2.21%, followed by industrial
equipment maker Yokogawa Electric Corp 6841.T gaining 1.99%,
and steelmaker JFE Holdings Inc 5411.T up by 1.01%.
Major exporters like automaker Toyota Motor Corp 7203.T
and construction equipment maker Komatsu Ltd 6301.T fell as
the yen JPY= briefly jumped to a three-month high. A stronger
yen tends to weigh on exporters' earnings.
Oil and natural gas developer Inpex Corp 1605.T and oil
refiner JXTG Holdings Inc 5020.T ended higher but pared gains
after a spike in oil futures started to fade.
U.S. crude CLc1 , which surged more than 4% as the Iranian
attacks unfolded, traded up 0.93% at $63.28 a barrel around the
time Nikkei trading closed.
Higher oil prices could raise costs for end users but boost
earnings for producers and refiners.
The broader Topix index .TOPX fell 1.37% to 1,701.40.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 1.27 billion, compared to the average of
1.11 billion in the past 30 days.
Iran fires rockets at Iraqi air base hours after funeral of
slain commander ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>