Nikkei in Japan Drops 1.5%; Hitachi Net Up Fourfold

Nigel Thomas
12 May, 2011
New York City

Stocks in Japan dropped sharply led by resources and commodities linked stocks. Hitachi Ltd said fourth quarter net quadrupled on cost cuts and higher sales of construction equipment and chips. Inpex, Mitsui, Mitsubishi and JX Holdings led the decliners.

[R]5:00 PM Tokyo – Stocks in Japan dropped sharply led by resources and commodities linked stocks. Hitachi Ltd said fourth quarter net quadrupled on cost cuts and higher sales of construction equipment and chips. Inpex, Mitsui, Mitsubishi and JX Holdings led the decliners.[/R]

The Nikkei 225 Stock Average declined 1.5% to 9,716.65 and broader Topix dropped 1% to 849.34.

The yen traded at 81.10 o a dollar and dropped to 114.57 against one euro.

Ministry of Finance said foreign investors added net 51 billion yen in Japanese stocks in the week in May 7 and bought 109.8 billion yen in the prior week. In all, foreign investors have been adding purchases for the sixth week in a row.

Stock Movers

Toyota Motor Corp increased 3.1% to 3,370 yen after the public broadcaster NHK said that the automaker will resume normal production in Asia outside Japan.

Separately, the company said it will resume its production in China in mid-June.

Toho Zinc plunged 9.5% to 391 yen after the company estimated 54% drop in fiscal year to 3.5 billion as production declined after March 11 earthquake.

Fujikura Ltd dropped 8.2% to 381 yen after the company estimated net income to plunge 36%.

Citizen Holdings Co. plunged 7.3% to 459 yen after the company estimated a 10% drop in operating profit.

Resource linked companies and trading companies declined after crude oil dropped 5.5%. Mitsubishi Corp eased 2% to 2,112 yen and Mitsui & Company declined 1.4% to 1,391 yen.

Inpex declined 3.6% to 563,000 yen and JX Holdings fell 2.5% to 537 yen. Sumitomo Mining dropped 31.5 to 1,352 yen after China reported slower than anticipated industrial growth.

Euro-zone linked stocks declined for the third day in a row as European leader question the additional aid to Greece and urge the nation to rebuild its economic foundation.

Nintendo Co dropped 2% to 18,600 yen and Nikon declined 1.9% to 1,660 yen. Nippon Sheet Glass Company added 0.8% to 244 yen after falling for three days in a row.

Hitachi Ltd increased 2.4% to 462 yen after the company said fourth quarter earnings quadrupled on higher demand for chips and construction equipment and on cost cuts. The company also declined to give an estimate for current year citing uncertainties related to supply chain after March earthquake.