Nikkei Declines in Tokyo; Tepco Recovers from 9% Loss

Nigel Thomas
25 Jul, 2011
New York City

Stocks in Japan declined on the worries that the U.S. debt talks impasse may lead to financial markets dislocation. The Nikkei index hovered near the 10,000 mark and the yen strengthened to a 4-month high.

[R]4:00 PM Tokyo – Stocks in Japan declined on the worries that the U.S. debt talks impasse may lead to financial markets dislocation. The Nikkei index hovered near the 10,000 mark and the yen strengthened to a 4-month high.[/R]

Stocks in Japan declined tracking the losses in Asia wide trading as U.S. debt talks reached an impasse.

Republican Party is struggling to agree with the tax increase for the wealthy and Democrats are shying away from the cuts in social spending for the poor. However, the military wasteful spending is expected to be preserved in the current negotiations.

The Nikkei 225 Stock Average decreased 0.8% to 10,050.01 and the broader Topix index fell 0.8% to 861.91.

The yen eased to 78.13 from 78.60 against one dollar and to 112.35 from 113.15 against one euro.

Stock Movers

Industrials and capital equipment makers decreased as regional markets fall on the U.S. debt talk impasse.

Toyota Motor decreased 1.4% to 3,290 yen and Nissan Motor Company added 1.1% to 851 yen. Honda Motor fell 1.4% to 3,290 yen.

Sony Corp fell 2.2% to 2,054 yen and Dainippon Screen Manufacturing Co. fell 2.8% to 628 yen. Hoya Corp decreased 1.8% to 1,839 yen and Ricoh declined 1% to 864 yen.

Tokyo Electric Power Co. decreased 1.4% to 535 yen after it fell as much as 9% in the day. Chubu Electric Power Co dropped 1% to 1,435 yen.

Tpeco shares dropped on the speculation that the government will enact a compensation scheme for the nuclear disaster victims as early as next week. The stock declined on the profit taking.

Senshukai increased 3.3% to 530 yen after the mail order catalog retailer lifted its operating profit outlook to 3 billion yen, a 50% increase.

Sanrio Co soared 9% to 2,265 yen on the speculation that the company’s pre-tax profit increased 48% to 4 billion yen in the quarter to June according to a report in the Nikkei daily.

Japan Drilling soared 6% to 3,170 yen after a media speculation suggested that the government funded plan may initiate a project to produce natural gas from methane hydrate on the sea bed before the end of the next fiscal year.