Nikkei in Japan Falls 1.1%; Sharp Up, Mitsubishi UFJ Down

Nigel Thomas
14 Sep, 2011
New York City

Stocks in Japan edged lower and banks led the decline on the worries of the exposure to the euro zone. Sony plans to release its next version of PlayStation hand held game device late in the year in Japan but will not discount the price. Resource linked stocks, banks and shipping companies fell.

[R]6:00 PM Tokyo – Stocks in Japan edged lower and banks led the decline on the worries of the exposure to the euro zone. Sony plans to release its next version of PlayStation hand held game device late in the year in Japan but will not discount the price. Resource linked stocks, banks and shipping companies closed lower.[/R]

Market indexes in Asia and in Japan were on the decline after Moody’s Investors Service lowered its views on second and third largest French banks, Credit Agricole and Societe Generale and placed the largest bank BNP Paribas on a watch.

The news was widely anticipated and the rating agency as usual has been lagging the market perception.

Moody’s lowered the debt rating by one notch to Aa3 for Soc Gen and to Aa1 for Credit Agricole and said that the debt of Greek debt exposure is manageable but the size of the debt is not consistent with the rating.

France’s largest bank BNP Paribas rating was left at Aa2 and the rating agency said that the bank debt will be under review with a possible downgrade.

BNP Paribas also said on its web site that it will cut its risk weighted capital by 70 billion euros and increase its Tier 1 capital ratio to 9% by the start of 2013.

The Nikkei 225 Stock Average fell 1.1% to 8,518.57 and the broader Topix index fell 1.1% to 741.69.

The benchmark index traded 0.6% in the early trading but reversed the course after China’s Premier Wen Jiabao said European nations must lower their debt and create jobs before seeking help from China.

He added, “What is most important now is to prevent the further spread of the sovereign debt crisis in Europe.”

He also stressed at a conference that China has consistently invested in the euro zone and will continue to do so.

The yen edged lower to 77.85 from 77.55 against one dollar but the euro dropped to a 10-year low to 104.59 after trading at 105.39 yesterday.

Trading volume on the First Section on the Tokyo Stock Exchange decreased to 1.8 billion shares, lower than 1.82 billion shares average last week. Declining issues were 1,286 and rising stocks were 285 in Tokyo trading.

Stock Movers

Nintendo Co dropped 0.4% to 12,240 yen a day after the company released software and other games. Sony Corp said it plans to launch its new PlayStation Vita handheld games device on December 17 in Japan and will not discount the price to meet Nintendo prices.

Elpida Memory dropped 3.6% to 537 yen and Advantest Corp fell 34 yen or 4% to 862 yen. Renesas Electronics fell 18 yen to 459 yen.

Mitsubishi UFJ Financial Group fell 1.8% to 325 yen and Sumitomo Mitsui Financial Group decreased 1.6% to 2,072 yen. Mizuho Financial declined 1 yen to 111 yen.

Bank of Japan board member Ryuzo Miyao said Japanese bank’s exposure to European debt is not that large.

Inpex Corp decreased 0.7% to 487,000 yen and Japan Petroleum Exploration Co decreased 2% to 2,954 yen.

Nippon Steel increased 0.9% to 223 yen and JFE Holdings, Inc rose 10 yen to 1,731 yen. Kobe Steel, Ltd declined 2 yen to 135 yen.

Toyota Motor decreased 15 yen to 2,634 yen and Honda Motor Co. added 7 yen to 2,296 yen and Nissan Motor fell 9 yen to 648 yen.

Suzuki Motor increased 3 yen to 1,541 yen.

However, two companies could not find projects to collaborate and the tensions rose after Suzuki decided to work with Fiat for a small engine.

Sony Corp rose 4 yen to 1,501 yen, Panasonic Corp added 7 yen to 747 yen and Canon Inc decreased 140 yen or 4% to 3,295 yen.

Fanuc rebounded 1% to 10,720 yen. Kyocera fell 1.9% to 6,610 yen.

Sharp Corp increased 3.3% to 595 yen and the consumer electronics maker said its sales in Indonesia will increase 27% to 58.5 billion yen or $760 million.

Construction equipment makers liked to China closed lower. Komatsu fell 3.8% to 1,730 yen and Hitachi Construction Machinery Co fell 3.2% to 1,297 yen.

Shipping companies closed lower. Nippon Yusen KK fell 1.3% to 222 yen and Mitsui O.S.K. Lines Ltd added 5 yen to 331 yen. Kawasaki Kisen Kaisha Ltd fell 5 yen to 178 yen.

Isetan Mitsukoshi Holdings decreased 7 yen to 756 yen and Takashimaya Co decreased 10 yen to 526 yen.

Fast Retailing Co increased 0.3% to 13,630 yen.

Bridgestone Corp increased 1% 1,683 yen and the company said its U.S. division will raise tire prices for trucks and buses by as much as 8% today.