By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) ? Japanese stocks swooned in volatile trading action Wednesday after Prime Minister Shinzo Abe?s blueprint to spur long-term economic growth fell short of expectations.
Most other regional markets declined after a weak lead from Wall Street overnight that kept alive concerns the Federal Reserve may taper its bond purchases, with Australian stocks sliding after the nation?s first-quarter growth came in below estimates.
In Japan, the Nikkei Stock Average /quotes/zigman/5986735 JP:NIK -3.26% ?rose more than 1% as Abe began his much-anticipated speech, but staged a swift reversal within minutes before ending the session 518.89 points, or 3.8%, lower at 13,014.87. The decline was the fifth time in the last two weeks when the Nikkei fell more than 3% in a single day.
The dollar /quotes/zigman/4868099/sampled USDJPY -0.4844% ?also charted a similarly volatile course, rising as high as ?100.45 before sliding back to ?99.57 by the time the stock market closed.
The sell-off came as Abe?s blueprint revealed plans to attract foreign funds, boost investment and wages, and revamp the structure of agricultural land. He also announced a proposal to allow the nation?s massive pension funds to increase their equity allocation.
?The market will be looking to hear more about his comments urging Japan?s public pension funds to increase their investments in equities and overseas assets,? said Stan Shamu, a strategist at IG Markets.
?The comments made by Abe today were not really a game-changer and disappointed a market which seems to have been positioned for a USD/JPY and Nikkei rally,? he added.
Power utilities dived as Abe pledged to restart shuttered nuclear plants in the country after ensuring their safety. He also announced plans to liberalize the retail electricity market, separate the distribution and transmission businesses, and boost capital spending in utilities.
Tokyo Electric Power Co. /quotes/zigman/198657 JP:9501 -16.31% ? /quotes/zigman/527598/quotes/nls/tkecy TKECY +5.93% ?plunged 16.3%, Tohoku Electric Power Co. /quotes/zigman/198589 JP:9506 -9.02% ? /quotes/zigman/527594/quotes/nls/tepcy TEPCY 0.00% slumped 9.1% and Kansai Electric Power Co. /quotes/zigman/194063 JP:9503 -8.82% /quotes/zigman/529254/quotes/nls/kaepy KAEPY -11.70% ?plummeted 9.2%.
Several exporters took a beating on the yen?s strength. Mitsubishi Motors Corp. /quotes/zigman/200115 JP:7211 -6.37% ? /quotes/zigman/200120/quotes/nls/mmtof MMTOF -0.66% ?skidded 5.7%, Fast Retailing Co. /quotes/zigman/139215 JP:9983 -9.38% ? /quotes/zigman/139220/quotes/nls/frcof FRCOF +7.47% ?sank 9.5%, Trend Micro Inc. /quotes/zigman/227667 JP:4704 -7.39% ? /quotes/zigman/287272/quotes/nls/tmicy TMICY +3.33% ?lost 8.2% and Sharp Corp. /quotes/zigman/197304 JP:6753 -6.59% ? /quotes/zigman/197677/quotes/nls/shcay SHCAY +7.31% ?gave up 7.3%.
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Sony Corp. /quotes/zigman/197500 JP:6758 -4.93% /quotes/zigman/197524/quotes/nls/sne SNE +1.43% ?lost 5%, failing to benefit from a Nikkei newspaper report that it plans to begin selling e-books for Apple Inc.?s /quotes/zigman/68270/quotes/nls/aapl AAPL -0.31% ?iPad and iPhone in Japan, starting as early as the second half of the current financial year.
Other regional markets
Elsewhere in the region, the Shanghai Composite /quotes/zigman/1859015 CN:000001 -0.38% eased 0.1% and South Korea?s Kospi /quotes/zigman/1652118 KR:SEU -1.52% ?gave up 1.5%. Hong Kong?s Hang Seng Index /quotes/zigman/2622475 HK:HSI -0.97% ?ended 1% lower, for its fifth decline in six trading days.
The losses came in the wake of an overnight decline on Wall Street, amid lingering worries the Fed would downsize its monthly bond purchases.
?U.S. Fed tapering fears are likely to be felt for several months, and this is likely to see ebbs and flows in markets,? said Matthew Sherwood, head of investment market research at Perpetual.
/quotes/zigman/5986735
JP : Nikkei Idx
Volume: 0.00
June 5, 2013 2:43p
/quotes/zigman/4868099/sampled US : ICAP
Volume: 0.0000
June 5, 2013 7:18a
/quotes/zigman/198657 JP : Japan: Tokyo
? 513.00
-100.00 -16.31%
Volume: 230.93M
June 5, 2013 2:34p
Market Cap?2121.12 billion
Rev. per Employee?114.83M
/quotes/zigman/527598/quotes/nls/tkecy US : U.S.: OTCBB
Volume: 675.00
June 4, 2013 3:01p
/quotes/zigman/198589 JP : Japan: Tokyo
? 1,099.00
-109.00 -9.02%
Volume: 3.20M
June 5, 2013 2:43p
Market Cap?602.96 billion
Rev. per Employee?72.97M
/quotes/zigman/527594/quotes/nls/tepcy US : U.S.: OTCBB
Volume: 100.00
Dec. 19, 2012 12:47p
/quotes/zigman/194063 JP : Japan: Tokyo
? 1,137.00
-110.00 -8.82%
Volume: 6.58M
June 5, 2013 2:43p
Market Cap?1132.11 billion
Rev. per Employee?86.74M
/quotes/zigman/529254/quotes/nls/kaepy US : U.S.: OTCBB
Volume: 100.00
May 28, 2013 3:35p
/quotes/zigman/200115 JP : Japan: Tokyo
Volume: 136.26M
June 5, 2013 2:42p
Market Cap?914.52 billion
Rev. per Employee?58.98M
/quotes/zigman/200120/quotes/nls/mmtof US : U.S.: OTCBB
Volume: 410.00
June 3, 2013 11:24a
/quotes/zigman/139215 JP : Japan: Tokyo
? 29,950.00
-3,100 -9.38%
Volume: 1.60M
June 5, 2013 2:42p
Market Cap?3468.61 billion
Rev. per Employee?53.99M
/quotes/zigman/139220/quotes/nls/frcof US : U.S.: OTCBB
Volume: 129.00
June 4, 2013 3:40p
Rev. per Employee$656,917
/quotes/zigman/227667 JP : Japan: Tokyo
? 2,959.00
-236.00 -7.39%
Volume: 874,000
June 5, 2013 2:42p
Market Cap?434.91 billion
Rev. per Employee?18.88M
/quotes/zigman/287272/quotes/nls/tmicy US : U.S.: OTCBB
Volume: 7,061
June 4, 2013 3:59p
Rev. per Employee$227,383
/quotes/zigman/197304 JP : Japan: Tokyo
Volume: 29.21M
June 5, 2013 2:43p
Market Cap?502.42 billion
Rev. per Employee?43.67M
/quotes/zigman/197677/quotes/nls/shcay US : U.S.: OTCBB
Volume: 67,557
June 4, 2013 3:59p
/quotes/zigman/197500 JP : Japan: Tokyo
? 1,910.00
-99.00 -4.93%
Volume: 19.92M
June 5, 2013 2:43p
Market Cap?1961.16 billion
Rev. per Employee?41.80M
/quotes/zigman/197524/quotes/nls/sne US : U.S.: NYSE
Volume: 4.07M
June 4, 2013 4:00p
Rev. per Employee$504,178
/quotes/zigman/68270/quotes/nls/aapl US : U.S.: Nasdaq
Volume: 10.23M
June 4, 2013 4:00p
Market Cap$423.07 billion
/quotes/zigman/1859015 CN : China: Shanghai
Volume: 50.87M
June 5, 2013 1:43p
/quotes/zigman/1652118 KR : S. Korea: KRX
Volume: 340.50M
June 5, 2013 6:03p
/quotes/zigman/2622475 HK : HangSeng Ind
Volume: 0.00
June 5, 2013 4:01p
Source: http://feeds.marketwatch.com/~r/marketwatch/financial/~3/ubQEMJCyNjM/story.asp
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