Stocks in Japan Decline on Weak Semi Equipment Makers, Realty Developers

Nigel Thomas
25 May, 2011
New York City

Stocks in Japan declined for the second day this week following the weakness in Asian markets. Semiconductor equipment makers closed lower after Applied Materials reported weaker than expected earnings. Real estate developers declined on negative comments from a broker.

[R]5:10 PM Tokyo – Stocks in Japan declined for the second day this week following the weakness in Asian markets. Semiconductor equipment makers closed lower after Applied Materials reported weaker than expected earnings. Real estate developers declined on negative comments from a broker.[/R]

Stocks in Japan declined after electronics equipment makers and real estate developers declined in weaker than average volume. Commodities and energy prices traded volatile in Asian trading but resources linked stocks closed higher.

Stocks in Asia declined for the second day this week on as weaker global economic sentiment. Markets in Hong Kong, China, Australia, South Korea and India edged lower.

The Nikkei 225 Stock Average declined 0.6% to 9.422.88 and the broader Topix index fell 0.2% to 817.74. Trading volume declined to 1.6 billion, lower than last week average of 1.78 billion shares and 2.2 billion shares average before March 11.

The yen closed at 81.20 to a dollar and at 114.556 to a euro.

Stock Movers

Semiconductor machinery makers declined after the U.S. based Applied Materials reported lower than expected earnings.

Dainippon Screen Manufacturing declined 2.8% to 654 yen and Elpida Memory Inc fell 3.8% to 1,048 yen.

Tokyo Electron Ltd eased 2.1% to 4,410 yen.

Real estate developers closed lower after Nomura Holdings commented that demand for commercial office space is expected to decline and office rents are likely to fall in the current year and extend to 2012.

Mitsubishi Estate fell 0.5% to 1,396 yen and Nomura Real Estate Holdings Inc dropped 1.4% to 1,237 yen. Sumitomo Realty & Development Co eased 1.3% to 1,665 yen.

Sony declined 1.5% to 2,238 yen after the company confirmed that Canada operation at Sony Ericsson Mobile Communication AB was hacked.

The company lost personal data of 2,000 customers. The company also confirmed that the latest series of attacks hacked its websites in four countries including Canada, Japan and Indonesia.

Toyota Motor increased 2.2% to 3,315 yen after several local reports in Tokyo suggested that the automaker is expected to reach 90% production target next month set before the March quake.

Energy complex companies gained after crude oil jumped 2% in New York but lost some of the gains in Tokyo trading. Inpex Corp increased 2.6% to 548,000 yen and Idemitsu Kosan Co added 0.8% to 8.540 yen.