Japan Stocks Edge Lower; Toyota Domestic Production Plunges 63%

Nigel Thomas
25 Apr, 2011
New York City

Stocks in Japan edged lower ahead of earnings release. Toyota led the automakers with the domestic auto production plunging 63% in March. Toyota

[R]5:00 PM Tokyo – Stocks in Japan edged lower ahead of earnings release. Toyota led the automakers with the domestic auto production plunging 63% in March. Toyota’s global production declined 30% in the month. Domestic production at Honda dropped 63% and at Nissan fell 52%.[/R]

Stocks in Tokyo traded in a narrow range ahead of earnings released and a week long holidays in late April and early May.

Tokyo stocks opened higher but lost steam in the afternoon as investors stayed on the sidelines and lack of foreign investors’ participation. U.S. and European markets were closed for Good Friday.

The Nikkei 225 Stock Average declined 0.1% or 10.25 to 9,671.96 and the broader Topix index fell 0.2% or 1.50 to 840.68.

The trading volume dipped to the lowest level in the year with 1.46 billion shares changing hands and below 2.1 billion shares average in the last two weeks.

The yen traded in a narrow range between 81.80 and 82.15 to a dollar.

Stocks are expected to struggle ahead of Golden Week holiday with gaps beginning on April 29 to May 9.

Investors were also on the sidelines ahead of comments from the Bank of Japan Governor Masaaki Shirakawa and the Fed Chairman Ben Bernanke.

Stock Movers

Toyota Motor declined 0.6% to 3,275 yen, Honda Motor lost 1.3% to 3,105 yen and Nissan dropped 1.8% to 759 yen.

Toyota Motor Corp said its global March production fell 30% to 542,465 and domestic production in Japan plunged 63% to 129,491.

Honda Motor said its March production declined 19% to 282,254 units and domestic output plunged 63% to 34,754. Nissan said its global output increased 9% to 382,704 and domestic production plunged 52% to 47,590.

Yahoo Japan declined 3.4% to 29,430 yen after the company guided higher earnings in the fiscal first quarter.

Mitsubishi Heavy Industries gained 1% to 387 yen after the Nikkei news speculated that its group operating profit will jump 52% from the previous year and ahead of expectations.

Shipping companies also closed higher on the expectations of the higher earnings in the year completed in March.

Mitsui OSK Lines increased 2% to 461 yen and Nippon Yusen gained 1.3% to 304 yen and Kawasaki Kisen added 0.7% to 278 yen.