Nikkei Declines 1.3% in Asian Markets Sell-off, Yen Near Record High

Nigel Thomas
18 Aug, 2011
New York City

Stocks in Japan declined more than 1% on the worries that economic slowdown in Europe and the U.S. will crimp earnings for exporters. The yen closed near record high and exports in July declined 3.3% from a year ago but trade surplus rose in the month.

[R]6:00 PM Tokyo – Stocks in Japan declined more than 1% on the worries that economic slowdown in Europe and the U.S. will crimp earnings for exporters. The yen closed near record high and exports in July declined 3.3% from a year ago but trade surplus rose in the month. Asahi Group agreed to acquire New Zealand based beverage maker for $1.3 billion.[/R]

Stocks in Japan declined tracking losses in Asian markets on the renewed worries of economic slowdown and anxieties about the euro-zone. The market indexes in Japan, Australia, Hong Kong and China fell more than 1%. The index in Mumbai fell more than 2%.

Nikkei 225 Stock Average declined 1.3% to 8,943.76 and the Topix index decreased 1.2% to 767.31.

Trading in Tokyo declined to 1.7 billion shares from the last week’s average of 2.4 billion and 417 shares increased and 1,122 declined.

The yen traded in a tight range and close near its record low of 76.25 against one dollar.

Exports in July decreased 3.3% from a year ago according to the data released by the Ministry of Finance.

Japan recorded a trade surplus of 72.5 billion yen in July compared to a surplus of 68.6 billion yen in June. Exports fell 3.3% from a year ago compared to a 9.9% rise in imports.

Asahi Group to Acquire Independent Liquor

Asahi Group Holdings Ltd., the Japan-based alcohol manufacturer agreed to acquire New Zealand based beverage group Independent Liquor for N$1.525 billion or 97.6 billion yen. The deal is part of Asahi''s continuing efforts to expand overseas as the Japanese market contracts.

Stock Movers

The strong yen dragged the consumer electronics maker lower for the second week in a row.

Toshiba Corp declined 4.5% to 322 yen and Hitachi dropped 2.4% to 409 yen. Mineba dropped nearly 6% to 3,320 yen and Shinko Electric declined 3.5% to 526 yen. TDK dropped 4.1% to 3,320 yen.

Fast Retailing increased 3.3% to 14,850 yen on the prospects of rising earnings in the latest quarter.

Asahi Group Holdings added 1.7% to 1,616 yen after it agreed to acquire the New Zealand based Independent Liquor for $1.3 billion or 98 billion yen.

Chip makers closed lower after Dell Inc issued a cautious outlook for the current quarter. Advantest declined 4.3% to 1,069 yen and Tokyo Electron decreased to 3.4% to 3,580 yen.

Toyota declined 1.7% to 2,807 yen, Honda Motor Co. fell 2.6% to 2,486 and Kyocera decreased 2.3% to 7,130 yen.