Stocks in Japan fell 2.0% Friday morning after a volatile
session overseas and concerns about an oil glut still weighing on
the market.
Tokyo's Nikkei Stock Average was down 2%, leading the region
mostly lower, even as the Japanese yen weakened. Stocks were
falling after swings in the U.S. market, where investors were
rattled overnight after Switzerland's central bank scrapped its
policy of capping the Swiss franc at 1.20 to the euro.
"The unfavorable currency and crude price effects on the market
are naturally causing capital flight from Japanese risk assets and
toward bonds," said Norihiro Fujito, senior investment strategist
at Mitsubishi UFJ Morgan Stanley Securities.
The U.S. dollar strengthened, trading at Yen116.35, from
Yen116.21 late Thursday in Asia, while the euro was at Yen135.28,
from Yen134.97 yesterday.
Elsewhere, Hong Kong was off 0.6% and Australia lost 0.5%.
In New Zealand, currency trading house Global Brokers NZ Ltd.
said it would close its doors, a casualty of the unexpected
decision by the Swiss National Bank to cease capping its currency.
The majority of the company's clients in Swiss franc positions were
on the losing side and sustained losses far greater than their
account equity, the statement said.
The region's weakness also came after oil prices erased gains
from Wednesday's rally. Light, sweet crude for February delivery,
the U.S. benchmark, settled down $2.23, or 4.6%, at $46.25 a barrel
on the New York Mercantile Exchange, continuing to fall in
Asia.
Bradford Frischkorn contributed to this article.
Write to Chao Deng at Chao.Deng@wsj.com
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