Nikkei in Tokyo Below 200-day Average

Nigel Thomas
19 Jul, 2011
New York City

Stocks in Tokyo declined below its 200-day average as global economic worries resurfaced. Industrials and automakers were among the leading decliners. Banks fell more than 2% on the worries that the debt contagion may widen in the euro-zone.

[R]4:30 PM Tokyo – Stocks in Tokyo declined below its 200-day average as global economic worries resurfaced. Industrials and automakers were among the leading decliners. Banks fell more than 2% on the worries that the debt contagion may widen in the euro-zone.[/R]

Stocks in Japan declined on the worries that the stalled U.S. debt talks and widening contagion in the euro-zone region may slowdown the global economic recovery.

The euro-zone ministers are expected to meet on Thursday to decide conditions on the second Greek bailout of 110 billion euros.

The Nikkei 225 Stock Average decreased 0.9% to 9,889.72 and earlier in the day index gained as much as 0.4% on the speculation that Japan may sell yen.

The broader Topix index fell 0.7% to 853.75 and the index was under pressure in the entire session.

The yen rose to a 4-month high of 78.05 but closed at 78.45 against one dollar.

Stock Movers

Automakers and industrials closed lower as the yen strengthened and on the worries that rising debt stress in the U.S. and the euro-zone.

Exporters and auto makers led the decliners.

Honda Motor Co. declined 2% to 3,145 yen and Nintendo Co. declined 3.7% to 14,670 yen. Canon Inc dropped 2.8% to 3,680 yen.

Banks declined on the worries that the euro-zone debt contagion may deepen in Italy and Spain as bond yields rose above 6%.

Mitsubishi UFJ Financial Group declined 2.5% to 383 yen and Sumitomo Mitsui Financial Group fell 1.3% to 2,404 yen. Mizuho Financial Group Inc decreased 2.3% to 126 yen.

Invincible Investment soared 8% to 12,200 yen after the company said it will raise 7 billion yen through the sale of 711,597 shares.

Retailers continued to rise on the expectations of higher sales and earnings in the latest quarter. Seven & I Holdings increased 1.3% to 2,263 yen.