Tokyo Trading Volume Drops; Japan to Pump Funds in Tepco

Nigel Thomas
18 Apr, 2011
New York City

Stocks in Tokyo trading declined as investors awaited earnings in the next two weeks. Trading volume dropped to the lowest in the year as G-20 meeting failed to produce concrete actions. Tepco is expected to receive multi-billion dollar infusion to pay for disaster expenses.

[R]5:00 PM Tokyo – Stocks in Tokyo trading declined as investors awaited earnings in the next two weeks. Trading volume dropped to the lowest in the year as G-20 meeting failed to produce concrete actions. Tepco is expected to receive multi-billion dollar infusion to pay for disaster expenses.[/R]

Stocks in Japan edged lower after a meeting of G-20 finance ministers failed to produce concrete steps to lift global economic growth. Trading volume dipped to the lowest in the year ahead of earnings.

Europe is heading towards restructuring of sovereign debt that may lead to more losses for banks and U.S. government excessive spending fuels global food and commodities price inflation.

The Nikkei 225 Stock Average declined 0.4% to 9,556.65 and the broader Topix index dropped 0.6% to 836.34.

Trading volume in the first section of the Tokyo Stock Exchange dropped to the lowest for the year to 1.03 trillion yen and 1.65 billion shares.

The yen hovered near 83 to a dollar and lifted export sensitive stocks.

Stock Movers

KDDI Corp declined 0.4% to 499,000 yen after a report in Nikkei newspaper speculated that the troubled electric utility Tokyo Electric Power may sell its 36,000 or 8% stake in the telecom to pay for the expenses related to nuclear disaster.

Tokyo Electric Power declined 0.4% to 467 yen as the company still struggles to contain radiation leak at the Fukushima power plant. The sources within ministry of Japan said that the company is expected to receive “multi-billion dollars” injection or a loan of 20 years or longer but the utility is not expected to be nationalized.

Softbank Corp fell 4% as negative sentiment led higher sell orders.

JFE Holdings declined 1.8% to 2,178 yen after the Nikkei report suggested that the steelmaker may reported full-year earnings between 50 billion yen and 60 billion yen compared to its estimate of 70 billion yen.

Sony Corp declined 1.4% to Nintendo fell 2.2% after the yen lost ground in Monday trading. TDK declined 3.7% to 4,305 yen and Komatsu fell 1.2% to 2,752 yen.

Toyota Motor Corp declined 0.5% and Honda Motor and Nissan Motor edged lower as well.

Financials edged lower on the worries. Mitsubishi UFJ Group Inc dropped 2.6% and Mizuho Financial Group fell 1.6%. Sumitomo Mitsui Financial Group declined 2%.

Fast Retailing increased 1.4% to 11,790 yen Takihyo Co. Ltd added 0.3% to 371 yen. Sanei-International Co. Ltd fell 2.2% to 871 yen.