Banks in Tokyo Close Lower

Mayank Mehta
19 Apr, 2010
New York City

Stocks in Tokyo trading fell sharply after banks and financial services declined on the worries that regulators my tighten scrutiny of local banks after the SEC accused Goldman Sachs for mortgage securities fraud. Airlines declined after more Asian carriers canceled flights to Europe.

[R]6:00 AM Tokyo, Japan – Stocks in Tokyo trading fell sharply after banks and financial services declined on the worries that regulators my tighten scrutiny of local banks after the SEC accused Goldman Sachs for mortgage securities fraud. Airlines and cargo companies declined after more Asian carriers canceled flights to Europe.[/R]

Stocks in Tokyo trading fell sharply following a weakness in the U.S. indexes and world air transport remain disrupted.

Worldwide air travel continues to be disrupted for the fourth day in a row and more than 60,000 flights are canceled in Europe.

Airports are closed in Ireland, Denmark, Norway, Sweden, Finland, Belgium and Germany after cautious regulators monitor volcanic ash cloud in the northern Europe.

U.S. securities regulators surprised markets after they alleged Goldman Sachs engaged in a mortgage securities fraud that defrauded investors with $1 billion and failed to inform clients that the broker was looking to profit the failure of these bonds.

Commodity stocks also plummeted as gold prices fell 0.3% to $1,134 per ounce and crude oil prices slipped 1.8% to $81.7 per barrel.

The Nikkei 225 Index in Tokyo closed lower 183.37 or 1.65% to 10,918.81 and of the stocks in Nikkei 225 Stock Average, 11 increased, 211 declined and 3 was unchanged.

Nikkei Movers

Konami Corp led the decliners in the Nikkei 225 Stock Average with a loss of 5.8% followed by losses in Shinsei Bank, Limited of 5.2%, in Ebara Corp of 5.1%, in Hino Motors Ltd 4.0% and in T&D Holdings, Inc 4.0%.

CSK Holdings Corporation led gainers in the Nikkei 225 Stock Average with a rise of 10.3% followed by gains in Nisshin Steel Co., Ltd 2.0%, in Tosoh Corporation of 1.6% and in Softbank Corp 1.1%.

Other Movers

All Nippon Airways Co., Ltd fell 2.0% to 284.00 yen after the carrier said Monday it has cancelled six flights to Europe on the same day due to ash from a volcanic eruption in Iceland.

Canon Inc the maker of digital cameras slipped 2.1% to 4,255.00 yen.

Mitsui & Co Ltd decreased 3.7% to 1,558.00 yen

Mitsubishi UFJ Financial Group, Inc fell 2.7% to 500.00 yen after its U.S. subsidiary UnionBanCal Corp., said it has taken over failed Tamalpais Bank, based in northern California.

Sumitomo Metal Mining Co., Ltd the copper producer fell 1.2% to 1,402.00 yen.

Sumitomo Mitsui Financial Group, Inc the bank dropped 3.3% to 3,180.00 yen.

Toyota Motor Corporation fell 1.7% to 3,630.00 yen and the carmaker is preparing to launch a minivan version of its Prius hybrid that may go on sale early next year, the Nikkei newspaper reported.