Yen Hovers at 15-year High; Same Store Sales in Japan Rise

Chandrasekhar Atreya
21 Oct, 2010
New York City

Japanese stocks fluctuated and dropped for a second day to close little changed after the yen hovered near its 15-year highs. Toyota recalls 1.53 million vehicles. Toshiba Corp swung to profit in the first half. Same store sales at convenience stores rose 12.9% in September and third monthly increase in a row.

[R]5:00 PM Tokyo, Japan – Japanese stocks fluctuated and dropped for a second day to close little changed after the yen hovered near its 15-year highs. Toyota recalls 1.53 million vehicles. Toshiba Corp swung to profit in the first half. Same store sales at convenience stores rose 12.9% in September and third monthly increase in a row.[/R]

Japanese stocks fell for a second day as the yen remained close to its 15-year high.

The Nikkei 225 Stock Average dropped 0.05% or 5.12 points to close at 9,376.48. The broader Topix dropped 0.4% to 820.40.

Of the 225 stocks in the Nikkei index, 71 gained, 136 decreased and 18 were unchanged.

The yen declined and traded above 81 against the dollar today after U.S. Treasury Secretary Timothy Geithner said the dollar will not weaken further against the yen and the euro.

The yen strengthened briefly to the upper 80.96 reaching 15-year intra-day high. The yen closed at 81.15 to a dollar in Tokyo today.

The trade-weighted index that measures the value of the yen linked to a basket of currencies reached to a new high. The index has been surging as the dollar falls on the growing perception that the U.S. Federal Reserve will soon announce additional stimulus and seek lower dollar.

The index, which is based on a reading of 100 in 2005, reached 125.762 topping the 125.226 reached on January 29, 2009.

Treasury Secretary Timothy Geithner said Wednesday he would use weekend meetings of G-20 finance ministers to advance efforts to rebalance the world economy and less reliant on the U.S. consumers.

Same store sales at convenience stores in Japan rose 12.9% in September from a year ago to 695.8 billion yen, the third month of growth in a row and the second-largest jump since comparable data became available in 2005. The data were reported by the Japan Franchise Association on Wednesday.

Tokyo’s Haneda Airport opened Thursday its new international terminal building and fourth runway. Haneda is just 15 kilometers from the heart of Tokyo where as the city’s main international gateway Narita is more than 50 kilometers away.

Top grade rice production accounted for just 64.4% of this year’s harvest, down 18.6% from 2009 and the lowest level since comparable records maintained in 1999, the Agriculture Ministry said Wednesday.

The ministry classifies rice in three classes based on color and shape. Poor quality harvest is likely to yield lower income to farmers.

The number of Japanese travelers with reservations on packaged tours to China dropped 27% in October from a year earlier, according to data released Wednesday by the Japan Association of Travel Agents.

The number of travelers to China declined after the recent spat between the nations triggered by a Chinese trawler’s collision with Japan Coast Guard vessels near the disputed Senkaku Islands.

Toshiba Corp said first half profit was better than expected, helped by demand for chips that store data is smartphones and tablet computers.

Net income during the half year ended September 30 was about 27 billion yen compared with a 57.7 billion yen loss a year earlier, the Tokyo-based company said in a statement.

Toyota Motor Corp said it will recall 1.53 million vehicles globally to fix a brake-related problem that may cause fluid leaks. The company will repair 599,029 units in Japan, and 740,000 units in the U.S., the company said Thursday.

Models recalled in the U.S. include the Avalon, Highlander Lexus GS300, Lexus IS250 and Lexus IS350. Toyota will also recall vehicles at joint ventures in China, the General Administration of Quality Supervision, Inspection and Quarantine said on its Web site today.

Gainers & Losers

Sumitomo Osaka led gainers in the Nikkei with a rally of 5.59% to 151 yen followed by Nitto Boseki Co 4.57% to 206 yen, Sumitomo Electric Industries 3.19% to 1,068 yen, Shinsei Bank Ltd 2.99% to 69 yen, Pioneer Corp 2.24% to 274 yen and Japan Tobacco 1.96% 265,700 yen.

Central Japan Railway led decliners in the index with a drop of 5.73% to 609,000 yen followed by Mizuho Securities 4.66% to 184 yen, West Japan Railway 3.27% to 295,500 yen, NKSJ Holdings 2.96% to 557 yen, JFE Holdings Inc 2.55% to 2,602 yen and Resona Holdings 2.33% to 630 yen.