Nikkei in Japan Declined 1.2%; Quarterly Capital Spending Falls 8%

Nigel Thomas
02 Sep, 2011
New York City

The Nikkei index declined 1.2% on Friday and advanced 1.7% and gained for the second week. Capital spending in the quarter to June declined 7.8% from a year ago. Automakers declined after Toyota and Honda reported lower sales in the U.S.

[R]6:00 PM Tokyo – The Nikkei index declined 1.2% on Friday and advanced 1.7% and gained for the second week. Capital spending in the quarter to June declined 7.8% from a year ago. Automakers declined after Toyota and Honda reported lower sales in the U.S.[/R]

The benchmark index in Tokyo declined more than 1% after a six-day rally and weaker than expected capital spending in the fiscal first quarter.

Capital spending declined 7.8% from a year ago in the quarter. The yen edged higher to 76.80 from 76.58.

The Nikkei 225 Stock Average fell 1.2% to 9,060.80 and the broader Topix index declined 1.1% to 769.78. For the week, the Nikkei rose 1.7% and the Topix added 1.8%.

Trading volume on the First Section of the Tokyo Stock Exchange was flat at 1.7 billion and 1,049 shares declined and 441 stocks rose.

Stock Movers

KDDI increased 0.7% to 577,000 yen after Deutsche Bank lifted its price target to 650,000 yen. Tokyo Electric Power Co. is planning to sell 200 billion yen of the KDDI shares at market price, according to a report on the website of Jiji Press.

Mitsubishi UFJ Financial Group fell 1.4% to 342 yen and Sumitomo Mitsui Financial Group decreased 1.7% to 2,211 yen. Mizuho Financial Group fell 3 yen to 113 yen.

Dai-Ichi Life Insurance Co. decreased 2,700 yen to 88,500 yen.

Inpex Corp decreased 2.1% to 509,000 yen and Japan Petroleum Exploration Co fell 65 yen to 3,155 yen.

Nippon Steel decreased 0.9% to 234 yen and JFE Holdings fell 1% to 1,798 yen. Kobe Steel fell 1.4% to 144 yen.

Toyota Motor decreased 1.6% to 2,711 yen and Honda Motor Co. fell 2% to 2,507 yen and Nissan Motor fell 1.7% 715 yen.

Toyota said its U.S. sales in August declined 13% and Honda sales in the month dropped 24%.

Sony Corp dropped 4.3% to 1,625 yen, machine tool maker THK Co fell 6% 1,457 yen and Okuma Corp declined 5.9% to 554 yen. Fanuc decreased 3.1% 12,570.

Construction equipment makers liked to China closed higher. Komatsu declined after three days of increase by 1.1% to 2,086 yen and Hitachi Construction Machinery fell 1% to 1,476 yen.

Isetan Mitsukoshi Holdings declined 3.8% to 762 yen after a broker lowered its view on the retailer on a poor profitability. Takashimaya Co decreased 2.3% to 522 yen after it reported August sales declined 0.9% from a year ago.