Nikkei in Japan Drops 2.4%; Japan Passes $1.1 Trillion Budget

Nigel Thomas
02 Mar, 2011
New York City

The benchmark index Nikkei declined 2.4% as crude oil surged and the lower house of Japan passed $1.1 trillion budget. The yen strengthened. Exporters and automakers led the decliners.

[R]5:00 PM Tokyo – The benchmark index Nikkei declined 2.4% as crude oil surged and the lower house of Japan passed $1.1 trillion budget. The yen strengthened. Exporters and automakers led the decliners.[/R]

Stocks in Japan fell sharply as oil price surge in international trading and protests intensify in Iran. Saudi Arabia benchmark stock index plunged 6.8% on Tuesday.

U.S. Defense Secretary Robert Gates confirmed that two ships and 400 Marines are dispatched to the Mediterranean Sea near Libya to conduct “humanitarian relief” and “evacuations.”

Nikkei 225 Stock Average fell 261.65 or 2.4% to 10,492 and Topix index dropped 2% to 944.07. The benchmark Nikkei declined for the first time in four days as oil rebounded.

The yen appreciated to 81.79 to a dollar and the crude oil price gained $1.00 to $100.35 in Asia trading.

Japan’s lower house passed 92.412 trillion yen or $1.1 trillion budget after a protracted battle that saw popularity of Prime Minister Naoto Kan and his cabinet to new low.

Stock Movers

Automakers, banks and retailers declined.

All Nippon Airways declined 3.1% after crude oil surged to 2-year high.

Aozora Bank declined 5% and Mitsubishi UFJ Financial Group declined 3.2%.

Toyota Motor fell 2.9% to 3,744 yen and Honda Motor and Nissan declined more than 2%. Asahi Glass declined 4.3% to 1,113 yen.

Export sensitive stocks declined as the yen firmed up. Nintendo Co declined 3.7% to 23,285 yen and Sony and Sharp declined more than 3%.

Showa Shell Sekiyu K.K. increased 5.7% to 786 yen.

Shin-Etsu Chemical Co declined 3.6% to 4,548 yen and Nippon Electric Gas Co fell 4.1% to 1,333 yen.

Yahoo Japan Corp increased 3.6% to 32,300 yen on the media reports that Yahoo is in talks to sell its 35% stake to Softbank Corp.