Investors sold stocks in Japan, with Prime Minister Shinzo Abe
set to dissolve the lower house Friday in preparation for an
election next month.
The Nikkei Stock Average was down 0.5% at 17215.02 as the U.S.
dollar held roughly flat.
The dollar traded at 118.12 Japanese yen, from Yen118.23 late
Thursday in New York. A weaker dollar weighs on Japanese exporters,
who earn in dollars overseas and pay costs in the local currency at
home.
"The market continues to show all the signs of being technically
overbought and potentially ready for a pullback," said Masayuki
Doshida, a senior market analyst at Rakuten Securities.
The Nikkei has gained 4.7% month to date, spurred by a surprise
monetary stimulus announcement by Japan at the end of October, the
delay of a tax hike originally planned for next year and a weak
local currency. The U.S. dollar rose to Yen118.72 Thursday, its
highest since August 2007.
Tokyo was headed for a 1.8% loss this week, however, as
investors assess how the government will address a flagging
economy, now in a technical recession. Exports rose 9.6% from a
year earlier in October, offering renewed hope that the yen's
continued slide will boost Japan's sales of goods abroad. Prime
Minister Abe is set to dissolve the lower house of parliament
Friday for an election next month following his decision to
postpone next year's sales tax increase.
Australia's S&P/ASX 200 was flat and Korea's Kospi was up
0.3%.
Write to Chao Deng at Chao.Deng@wsj.com
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