Automakers Lead Nikkei Lower in Tokyo; Another 7.1 Quake in Japan

Nigel Thomas
11 Apr, 2011
New York City

Stocks in Japan declined on the ongoing auto production worries. Automakers plan to increase production in stages from today and Sony suspended operations at a plant that makes optical parts. Northeast Japan was hit with another 7.1 magnitude earthquake at local time 5:17 pm.

[R]5:30 PM Tokyo – Stocks in Japan declined on the ongoing auto production worries. Automakers plan to increase production in stages from today and Sony suspended operations at a plant that makes optical parts. Northeast Japan was hit with another 7.1 magnitude earthquake at local time 5:17 pm.[/R]

Stocks in Tokyo trading closed lower after rising sharply in Friday’s trading on new supply worries for auto sector.

The Nikkei 225 Stock Average declined 48.38 or 0.5% to 9.719.70 and the broader Topix index declined 0.8 or 0.1% to 852.34.

The yen traded at 84.34 to a dollar.

Trading volume of 2 billion shares was the lowest since March 10 and the ruling Democratic Party of Japan was defeated in several local elections on Sunday.

Stocks turned positive after Tokyo Electric Power said it plans to limit or eliminate rolling blackouts but stocks declined in the afternoon session on the weak auto stocks.

After the close Japan Meteorological Agency issued a tsunami warning of waves up to 1 meter after a strong earthquake of a 7.1 magnitude hit the Tohoku region.

Japanese authorities and local television reports said tremors were felt as far away as central Tokyo.

The quake centred 30 km southwest off the coast of Fukushima is not expected lift waves higher than one meter, significantly below the 20 to 30 meter waves after the March 11 earthquake.

Stock Movers

Investors sold stocks of automaker on supply chain worries and a broker speculation on continued weakness for several weeks. Toyota Motor declined 2.4% to 3,260 yen and Nissan Motor lost 2.4% to 697 yen and Honda Motor fell 2.9% to 2,903 yen.

Sony declined 1.5% to 2,576 yen and the company suspended production at its optical parts plant in Miyagi Prefecture northern Japan.

Toshiba Corp declined 4.1% to 402 yen on a broker speculation that the company’s nuclear power business is not expected to suffer after the recent disaster at Fukushima Daiichi power plant.

Inpex gained 3% to 654,000 yen and Japex increased 1.7% to 4,155 yen after crude oil futures reached 30-month high on ongoing Western aggression in Libya.

Tepco increased 19% to 500 yen, the forth increase of daily limit of 80 yen in a row. The stock is now up 48% in the last four sessions.