(Reuters) – Japan’s Nikkei average slipped 0.6 percent on Tuesday, erasing earlier gains as exporters fell on a stronger yen and charts remained grim, with the benchmark poised for its worst quarter since Lehman Brothers failed in 2008.
The Nikkei’s MACD continued to face downward after a sustained rise, while its slow stochastic, which gives near-term signals on market trends, also appeared set to dip after flattening in oversold territory.
Market players also said trade will likely remain thin, after volume hit a four-month low on Monday, as the market awaits a series of economic indicators this week including the Bank of Japan’s quarterly “tankan” survey of corporate sentiment on Thursday and U.S. jobs data on Friday.
The dollar fell 0.5 percent to 88.92 yen and the euro lost 0.5 percent to 109.10 as Japanese exporters repatriated profits before the second quarter ends later this week.
“The current dollar level is pretty tough for the market, and when the day’s falls in Shanghai stocks are added in the impact is significant,” said Noritsugu Hirakawa, a strategist at Okasan Securities.
“This whole situation is fanning fears about Japanese results.”
Shanghai shares fell 1.8 percent, and the benchmark Nikkei is poised to book its worst quarter since October-December 2008 as European debt worries pushed investors to curb their willingness to bet on risky assets, including equities.
The Nikkei shed 49.59 points to 9,644.97, with the broader Topix slipping 0.4 percent to 857.42.
For the quarter ending Wednesday, the index has shed about 12 percent so far, compared with a 21 percent drop in the quarter that finished in December 2008, following the collapse of Lehman Brothers.
Canon Inc lost 1.3 percent to 3,440 yen and Honda Motor Co fell 0.8 percent to 2,663 yen. Tokyo Electron shed 0.6 percent to 5,050 yen.
Kenyans back new constitution, support wanes -poll
June 4 (Reuters) – More than half of Kenyans would vote ‘yes’ to reform the constitution in a referendum due in August but the percentage in favour of the new legal framework has fallen since April, an independent poll showed on Friday.
The new charter, which would curb sweeping presidential powers and strengthen civil liberties, is seen as the centre-piece of political reforms aimed at healing the ethnic divisions that dominate Kenyan politics.
A total of 57 percent said they would vote ‘yes’ — down by seven percentage points since April, 20 percent said they were against the draft constitution and 19 percent were still undecided, the survey by pollster Synovate showed.
Most analysts agree Prime Minister Raila Odinga and President Mwai Kibaki, rivals in the last vote, would be the biggest winners in the event of a ‘yes’. Kibaki would fulfill one of his earliest electoral promises and secure his legacy while Odinga, who has been unequivocal in backing the document, would get a boost ahead of the 2012 presidential poll.
Others argue, however, that approval of the new constitution could pave the way for new alliances, threatening the fragile coalition, although a ‘no’ vote is not seen precipitating the government’s collapse.
“A ‘yes’ vote could destabilise the coalition. In the event of a ‘no’ vote, the coalition will continue, the status quo will remain although perhaps they will kick out … rebel ministers,” political commentator Mutahi Ngunyi told Reuters.
Synovate said it interviewed 6,000 registered voters across the country. In its last survey in April, which sampled opinion from 2,000 Kenyans of voting age, 64 percent said they would vote yes. [ID:nLDE63N048]
Guarantees of a new legal framework were central to a power-sharing deal in 2008, brokered by former U.N. chief Kofi Annan, that ended weeks of violence that killed about 1,300 people after a disputed poll.
But some senior politicians are spearheading a ‘no’ campaign angry at the failure to devolve power to the regions and plans to cap private land holdings.
Christian church leaders are also urging a ‘no’ vote because of a clause allowing abortions on medical grounds and the inclusion of Islamic courts dealing with divorce and inheritance.
Synovate also said its poll showed that if a snap presidential election was held immediately, Odinga would win 41 percent of the vote, far ahead of his closest rivals. Kibaki cannot run for a third term. (Reporting by Richard Lough; Editing by Wangui Kanina and Louise Ireland)