By Sarah Turner and V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese stocks fell sharply Friday
to return most of the gains recorded earlier in the week as the yen
strengthened ahead of a meeting of the world's top finance
ministers.
The Nikkei Stock Average dropped 1.2% to 11,173.83.
The decline came as cautious investors looked ahead to a meeting
of finance ministers and central bankers from the Group of 20
nations, amid expectations that the yen's steep fall over the last
few weeks may be in focus at the meeting.
"Japan continues to grab headlines in Asia with plenty of yen
positioning ahead of the G20 meetings. The Nikkei has lost ground
as the yen appreciates, heading into the meeting," said IG Markets
strategist Stan Shamu.
Despite the sharp fall on Friday, the Nikkei finished the week
0.2% higher, marking its 13th advance in the last 14 weeks.
The dollar (USDJPY) slipped as low as 92.22 yen during the
session in Asia, from around Yen92.85 late Thursday in North
America, after spending much of the week above Yen93.
A strengthened yen affects the global competitiveness of
Japanese products, and often tends to hurt stocks of companies
reliant on overseas demand.
Several currency-sensitive stocks lost ground, with Toyota Motor
Corp. (TM) sliding 1.9% and Subaru maker Fuji Heavy Industries Ltd.
(FUJHY) off 1.7%, while Panasonic Corp. (PC) shed 0.9%.
Shares of Sony Corp. (SNE) fell 1.9%.
U.S. videogame-console and software sales dropped in January,
according to NPD Group, and Sony is widely expected to unveil its
new gaming console at an event Feb. 20.
Other movers
The market moves were more modest elsewhere in Asia, with South
Korea's Kospi and Hong Kong's Hang Seng Index each gaining 0.1%,
while Australia's S&P/ASX 200 slipped 0.1%.
The Kospi ended the week 1.6% higher, and was followed by a 1.3%
gain for the S&P/ASX 200 and a 1% rise for the Hang Seng
Index.
Mainland Chinese and Taiwanese markets, which remained closed
for a holiday, are set to reopen on Monday.
Downbeat earnings reports contributed to the losses in Tokyo and
Sydney.
Japanese steel giant Nippon Steel & Sumitomo Metal Corp.
(NISTF) fell 2% after it released a weaker-than-expected earnings
forecast for its fiscal year on Thursday.
Kirin Holdings Co. (KNBWY) fell 4.9% after the Japanese brewer
said its 2013 pretax profit will likely fall 5% on sales promotion
costs, according to a Nikkei news report.
Also trending lower after its earnings report, Trend Micro Inc.
(TMICY) lost 6.1%.
Meanwhile, Australia & New Zealand Banking Group Ltd.
(ANEWF) declined 1% in Sydney after the banking major reported a
20% drop in first-quarter net profit amid soft economic
conditions.
Miners also fared poorly, led by Rio Tinto Ltd. (RIO). Rio's
shares dropped 2.7% after the mining giant Thursday reported its
first fiscal-year loss.
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