Nikkei Drops 1.7%, Auto Parts Makers Fall; Japan Halts Food Shipment

Nigel Thomas
23 Mar, 2011
New York City

Nervous investors in Japan sold stocks after Tokyo Electric Power struggled to restore power at the disaster stricken power plant and Japan halted consumption of food from northern region. The Bank of Japan stopped adding liquidity. Automakers decline. Izumiya soars on higher earnings.

[R]5:00 PM Tokyo – Nervous investors in Japan sold stocks after Tokyo Electric Power struggled to restore power at the disaster stricken power plant and Japan halted consumption of food from northern region. The Bank of Japan stopped adding liquidity. Automakers decline. Izumiya soars on higher earnings.[/R]

Stocks in Japan closed lower as market jitters rose and Japan halted consumption and shipment of farm products grown near the area hit with natural disaster.

The Bank of Japan did not add liquidity to the financial system for the first time in seven days. The bond dealers noted that there is amply liquidity in the market and the central bank has been in the front-line to provide needed cash to banks and large institutions.

The Nikkei 225 Stock Average fell 1.7% or 158.85 to 9,449.47 and the broader Topix index declined 0.8% or 6.99 to 861.14.

The yen closed at 80.87 to a dollar and at 114.58 to a euro.

Health ministry testing of food and farm products found 1,600 times more radiation than normal levels in the earthquake and tsunami stricken areas. The ministry also found higher levels of iodine and cesium in several farm products grown in the region.

Stock Movers

Japanese automakers closed lower after supply chain worries weighed on the market sentiment. Rolling black outs in the Tokyo region prompted Toyota to shut down assembly operations on Saturday.

Nissan Motor declined 1.8% to 711 yen and Toyota Motor declined 1.5% to 3,295 yen. Auto parts maker Jtek Corp dropped 6.1% to 976 yen and Toyota Boshoku Corp declined 5.2% to 1,131 yen.

The automotive bearings makers NTN Corp declined 5.7% to 382 yen and NSK Ltd dropped 5.2% to 675 yen.

Beverage makers gained after Tokyo authorities recommended infants to not use tap water after it found traces of radioactive iodine.

Asahi Breweries Ltd increased 2.6% to 1,476 yen and Kirin Holdings Co added 1.9% to 1,103 yen. Ito En Ltd. increased 3% to 1,391 yen and Coca-Cola added 5.6% to 1,454 yen.

Water purifiers and filtration system makers gained. Organo Corp soared 8.4% to 580 yen and Kurita Water Industries Ltd added 2.8% to 2,376 yen.

Nippon Hotel Fund Investment Corp soared 7% to 261,000 yen after the hotel real estate investment trust said it plans to raise 3.6 billion yen through the sale of 15,831 shares to two investors.

Izumiya Co. soared 5.8% to 367 yen after the supermarket operator reported full-year earnings of 750 million yen on lower than expected losses linked to loans. Sales in the year increased 0.9% to 357.27 billion yen and net soared 275% to 750 million yen.