Nikkei in Tokyo Drops 1.1%; Supply Chain and Fukushima Worries

Nigel Thomas
05 Apr, 2011
New York City

Stocks in Japan declined as fresh worries arose concerning nuclear power plant. Fishery related stocks declined after Tepco dumped water with low radioactive contamination in Pacific Ocean. Automakers declined after Toyota joins Honda and Nissan in curtailing auto production.

[R]5:00 PM Tokyo – Stocks in Japan declined as fresh worries arose concerning nuclear power plant. Fishery related stocks declined after Tepco dumped water with low radioactive contamination in Pacific Ocean. Automakers declined after Toyota joins Honda and Nissan in curtailing auto production.[/R]

Stocks in Tokyo declined on the supply chain worries and new concerns over nuclear power plan crisis.

Nikkei 225 Stock Average decreased 1.1% or 103.34 to 9,615.55 and the broader Topix fell 1.5% to 846.66.

Trading volume declined to 2.6 billion shares, just above weekly average for the last two weeks.

Stocks in the early trading faced selling after Tepco said it dumped more water with low levels of radioactive concentration in the Pacific Ocean. The power plant is looking to create more room to store water with higher concentration of radioactive substance.

Investors were spooked after the fresh troubles at the Fukushima power plant controlled by Tokyo Electric Power. In addition, supply chain worries also affected automakers and electronics makers.

Stock Movers

Asahi Co. dropped 2.8% to 1,425 yen after the bicycle retailer said full-year net income increased 2% to 2.14 billion yen lower than the estimated 2.18 billion yen.

Automakers were in focus on supply chain worries. Toyota Motor Corp decreased 2.4% to 3,260 yen after Kyodo News said Toyota Motor’ North American operations may be affected. Honda Motor Co. declined 2.5% to 2,934 yen.

Tokyo Electron Ltd declined 2.8% to 4,510 after the Semiconductor Industry Association said worldwide semiconductor sales declined 1.1% in February $25.2 billion from January.

Bookoff Corp declined 3.5% to 578 yen after the used book retailer said March same-store sales plunged 11% after it operated stores short hours after the March 11 earthquake.

Itochu Corp declined 2.4% to 860 yen and its subsidiary agreed to acquire ARCO Aluminum Inc for $680 million from UK based BP Plc.

Nitori Holdings Co declined 2% to 7,000 yen after the furniture retailer said full-year net income increased 29% to 30.8 billion yen and estimated 13% decline in net income in the current fiscal year.

Shin-Kobe Electric Machinery Co. soared 13% to 1,240 yen after the company said it developed a temporary power storage and power stabilizers.

Tokyo Electric Power Co. declined its daily limit of 80 yen or 18% to 362 yen, the lowest in sixty years of trading after it poured radioactive water into the sea to create a room for water with higher concentrate of radioactive substances.

Tepco traded 200 million shares.

Fishery related stocks declined. Nippon Suisan Kaisha declined 4.9% to 212 yen and Maruha Nichiro Holdings dropped 2.5% to 115 yen.