Nikkei in Weekly Loss of 2.4%; GDP Revised to 2.1% Decline

Nigel Thomas
09 Sep, 2011
New York City

Stocks in Japan declined after GDP shrinkage estimate was revised to 2.1% from the previous read of 1.2% decline. The Nikkei index declined 0.6% and for the week lost 2.4%. Fanuc and other machinery makers declined on the weak GDP data. Fast Retailing gained 1.8% on positive comments.

[R]6:00 PM Tokyo – Stocks in Japan declined after GDP shrinkage estimate was revised to 2.1% from the previous read of 1.2% decline. The Nikkei index declined 0.6% and for the week lost 2.4%. Fanuc and other machinery makers declined on the weak GDP data. Fast Retailing gained 1.8% on positive comments.[/R]

Stocks in Japan closed lower after GDP estimate for the fiscal first quarter was revised sharply lower.

The Cabinet Office lowered its estimate of the economic contraction to 2.1% from the previous estimate of 1.3%. The sharp decline in the inflation adjusted estimate surprised the market.

The Nikkei 225 Stock Average fell 0.63% or 55.46 to 8,737.66 and the broader Topix index declined 0.2% or 1.71 to 755.70. For the week the Nikkei declined 2.4%.

The yen edged lower to 77.55 from 77.35 against one dollar.

Trading volume on the First Section on the Tokyo Stock Exchange increased to 2.2 billion shares, higher than 1.46 billion shares on Thursday. Declining issues were 818 and rising stocks were 691 in Tokyo trading.

Foreign investors sold Japanese stocks in August, first monthly sales in the year and the fourth largest monthly sale on the record, according to the Tokyo Stock Exchange.

Overseas investors sold 1.07 trillion yen or $14 billion of stocks in the month.

China’s annualized inflation declined 6.2% in August after surging to a 3-year high in July. The decline in inflation was expected and matched economists’ estimates.

Stock Movers

Elpida Memory added 6 yen to 493 yen and Advantest Corp fell 36 yen or 4% to 892 yen. Renesas Electronics fell 13 yen to 478 yen.

Mitsubishi UFJ Financial Group rose 5 yen to 332 yen and Sumitomo Mitsui Financial Group increased 1% to 2,132 yen. Mizuho Financial Group added 2 yen to 113 yen.

Inpex Corp decreased 0.6% to 489,500 yen and Japan Petroleum Exploration Co decreased 2% to 3,020 yen.

Nippon Steel decreased 2.1% to 226 yen and JFE Holdings, Inc fell 19 yen to 1,750 yen. Kobe Steel, Ltd fell 1 yen to 138 yen.

Toyota Motor decreased 0.7% to 2,680 yen and Honda Motor Co. fell 1% to 2,347 yen and Nissan Motor decreased 6 yen to 667 yen.

Nikon increased 2.5% to 1,773 yen after the Nikkei newspaper said that the company will release its first mirrorless interchangeable-lens for digital camera at the end of the year.

Sony Corp fell 1 yen to 1,557 yen, Panasonic Corp added 11 yen to 781 yen and Canon Inc decreased 0.7% to 3,490 yen. Nintendo Co, Ltd fell 220 yen or 1.6% to 13,180 yen.

Fanuc extended losses for the second day in a row and plunged 7.6% to 10,730 yen. The stocks has declined 10% in the last two days and today’s sell off was prompted after UBS cuts its target price to 11,500 yen from 15,200 yen.

Construction equipment makers liked to China closed lower. Komatsu fell 4.4% to 1,797 yen and Hitachi Construction Machinery Co decreased 3.1% to 1,310 yen.

Shipping companies closed higher. Nippon Yusen KK fell 0.9% to 223 yen and Mitsui O.S.K. Lines Ltd declined 4 yen to 313 yen. Kawasaki Kisen Kaisha Ltd fell 5 yen to 181 yen.

Isetan Mitsukoshi Holdings increased 13 yen to 779 yen and Takashimaya Co decreased 1 yen to 530 yen.

Fast Retailing Co soared 1.8% to 14,630 yen after the company guided optimistic outlook and reiterated its plan to open 2,000 stores in the next decade in Asia. The company also said its back-to-basics apparel plan is attracting customers.