Nikkei Steady Ahead of GDP, Inflation Data; Asahi Down

Nigel Thomas
10 Feb, 2011
New York City

Stocks in Japan declined ahead of three day weekend and GDP and inflation data next week. Asahi Glass fell on cautious outlook but Nissan rose as automakers report rising sales and earnings. Shipping companies rose after freight rate index gained.

[R]6:00 PM Tokyo – Stocks in Japan declined ahead of three day weekend and GDP and inflation data next week. Asahi Glass fell on cautious outlook but Nissan rose as automakers report rising sales and earnings. Shipping companies rose after freight rate index gained.[/R]

Stocks in Japan were flat after mixed earnings report and cautious comments from the U.S. Fed Chairman Bernanke. Stocks also edged lower ahead of three-day weekend.

Investors turned cautious ahead of GDP data on Monday and CPI data on Tuesday and worried that exports may suffer as as money flows out of the emerging markets and China.

Nikkei 225 Stock Average declined 0.1% or 12.18 to 10,606.65 and for the week added 0.6%. The Topix index increased 0.3% to 946.63 and of the 33 sub indexes 24 increased.

Trading in Tokyo was higher than 2 billion shares for the fifth day in a row and touched 2.08 billion shares today.

Shipping companies gained after a rate tracking index rose in London trading. Baltic Dry Index gained 2.3% indicating a revival in demand for ocean freight.

Nippon Yusen KK added 2.2% 373 yen and Kawasaki Kisen Kaisha Ltd added 3.8% to 360 yen and Mitsui O.S.K. Lines Ltd rose 2.2% to 558 yen.

More than 170 companies released earnings today and Sumitomo Osaka, Takata ad Calsonic Kansei reported higher than expected earnings.

Stock Movers

Asahi Glass declined 1.9% to 1,077 yen after the company lowered fiscal year earnings outlook by 4%.

Calsonic Kansei Corp jumped 10% to 400 yen after the auto parts maker lifted annual net outlook by 67% to 10 billion yen.

Sumitomo Osaka Cement increased 6.5% to 204 yen after it reported nine-month net income of 1.13 billion yen compared to a loss of 871 million yen.

Takata surged more than 6% to 2,680 yen after it reported nine-month net income increased to 16.4 billion yen from 4.77 billion a year ago.

Toyota closed up 2.9% to 3,775 yen after rising more than 5% on Wednesday on the report that the automaker may partner with Mitsui and Russian auto maker Sollers and assemble passenger cars in Vladivostok next year.