Stocks in Tokyo Decline as Trading Volume Drops to New Low

Nigel Thomas
30 May, 2011
New York City

Stocks in Japan declined and trading volume dropped to the lowers for the year. The stronger yen dragged exporters lower. Honda Motor delayed its stock purchase plan and Pacific Metals lowered its current year net outlook.

[R]4:30 PM Tokyo – Stocks in Japan declined and trading volume dropped to the lowers for the year. The stronger yen dragged exporters lower. Honda Motor delayed its stock purchase plan and Pacific Metals lowered its current year net outlook.[/R]

Stocks in Tokyo closed lower in the weakest trading volume for the year. Over the weekend G-8 summit statement indicated global economic recovering is “becoming more sustained” and also noted that nations will work to lower the debt loads.

The weak G-8 statement lacked specifics on the debt targets and also plans to stimulate faltering world economies as the U.S. struggles with high unemployment and Europe faces high cost of bailout of peripherals nations in the Euro-zone.

The Nikkei 225 Stock Average declined 0.2% to 9,504.97 and the broader Topix decreased 0.2% to 823.68.

Trading volume declined to the lowest for the year to 1.38 billion shares compared to the low in April of 1.5 billion and daily average of 1.64 billion shares in the last week.

The yen traded near 80.85 for one dollar.

The opposition party threatened to submit a no-confidence motion against Prime Minister Naoto Kan over his handling of tsunami and earthquakes on March 11. The opposition party has a small chance of gathering enough support for the motion in the Diet.

Stock Movers

Senshu Ikeda Holdings Inc dropped 4% to 108 yen after the company said it may buy shares for as much as 31.2 billion yen.

Honda Motor declined 1.3% to 3,030 yen after the company deferred the decision to buyback shares and preserve capital in the wake of March 11 triple disasters.

The company also said personal information of 283,000 customers at its Canada location was hacked.

Sony Corp declined 2.1% to 2,122 yen and Canon Inc, Olympus and Nikon edged lower following a stronger yen.

Pacific Metals Co dropped 4% to 554 yen after the company estimated current year net income to drop sharply to 2.78 billion yen on lower sales.