Nikkei in Tokyo Eases; Isuzu, Nissan, Suzuki Advance

Nigel Thomas
23 Jun, 2011
New York City

The benchmark index in Japan declined on weaker than expected economic growth in the U.S. Nissan, Isuzu and Suzuki gained on higher than expected earnings outlook. Domestic production is expected to revive earlier than expected as supply chain worries ease.

[R]4:30 PM Tokyo – The benchmark index in Japan declined on weaker than expected economic growth in the U.S. Nissan, Isuzu and Suzuki gained on higher than expected earnings outlook. Domestic production is expected to revive earlier than expected as supply chain worries ease.[/R]

Stocks in Japan closed lower after the U.S. Federal Reserve Bank lowered its economic views but did not offer any plan to revive the growth. Nissan, Isuzu and Suzuki gained after estimating higher than expected annual net.

Asian markets edged lower after the U.S. Fed lowered its growth forecast for 2011 and 2012 and gave no indication of further stimulus plans.

Chairman Ben Bernanke reiterated to keep its target for the federal funds rate at zero to 0.25% and said that rates are likely to remain at exceptionally low levels for an “extended period.”

""The economic recovery is continuing at a moderate pace, though somewhat more slowly than the committee had expected,"" the Fed statement indicated.

The Nikkei 225 Stock Average decreased 0.3% to 9,5,96.74 and the broader Topix index fell 0.4% to 825.51. The Nikkei is down 8% from March 10.

Tokyo trading volume fell to 1.72 billion shares from the 1.91 billion shares in the previous session. Of the stocks traded, 945 increased and 577 decreased.

The yen gained to 80.40 from 80.10 against one dollar and eased to 115.10 from 114.90 against one euro.

Stock Movers

Suzuki Motor increased 3.1% to 1,757 yen after the small car maker estimated net income in the current fiscal year to increase 11% to 50 billion yen. Operating profit is expected to rise to 1100 billion yen from 106.9 billion in the latest year.

Nissan Motor gained 1.3% to 839 yen and after the market close said net income is expected to rise to 270 billion in the current fiscal year.

The stock was the most active on the Tokyo Stock Exchange after Chief Executive Carlos Ghosn yesterday estimated sales in the current year to be “significantly higher” than in the previous year.

Isuzu advanced 3.4% to 364 yen after the company estimated current fiscal year net to increase 26% to 65 billion yen.

Nippon Steel Corp added 1.7% to 247 yen after the company raised price for steel shipment between April and September shipments according to a report in the Nikkei newspaper.