Nikkei in Tokyo Declined 1.1%; Financials, Exporters Lead

Nigel Thomas
04 Oct, 2011
New York City

Stocks in Japan declined on the rising worries in the euro zone and the yen rose to a decade-high against the euro. Markets in Hong Kong, India, Shanghai and Australia declined. Exports driven companies led the decliners.

[R]6:00 PM Tokyo – Stocks in Japan declined on the rising worries in the euro zone and the yen rose to a decade-high against the euro. Markets in Hong Kong, India, Shanghai and Australia declined. Exports driven companies led the decliners.[/R]

Stocks in Japan declined for the second day in a row after fears of bank worries in the euro zone rose to a new height. The member nations in the euro zone disagreed on how to distribute the next tranche of bailout funds to Greece.

After the market close, the troika of international lenders decided to delay the 8 billion euros tranche till Greece meets the conditions laid out for the spending cuts and revenues increase.

The Nikkei 225 Stock Average decreased 1.1% to 8,456.12 and the broader Topix index fell 1.5% to 736.18.

The yen edged lower to 76.55 from 76.15 against one dollar and traded near one-decade high against the euro.

Stock Movers

Japan Tobacco Inc decreased 0.8% to 364,000 yen on the ongoing speculation that the government may lower its stake in the company.

Japan Petroleum Exploration Co decreased 55 yen to 2,709 yen and Inpex declined 3.6% to 455,500.

Promise Co, Ltd increased 14 yen or 1.8% to 773 yen and two days ago Sumitomo Financial agreed to pay 780 per share and participate in the share offering that valued the sub-prime lender at $2.7 billion.

The Tokyo Electric Power Company decreased 9 yen to 230 yen.

Mitsui OSK reported a loss of 17 billion yen in the fiscal first half ending in September on the rising yen and weak shipping freight rates.

Mitsubishi UFJ Financial Group fell 13 yen to 331 yen and Sumitomo Mitsui Financial Group decreased 32 yen to 2,114 yen.

Mitsubishi Corp decreased 87 yen to 1,429 yen and Mitsui & Co fell 31 yen to 1,043 yen.

Komatsu decreased 82 yen to 1,540 yen and Hitachi Construction Machinery Co increased 2 yen to 1,279 yen.

Dai-ichi Life fell 1.4% to 76,900 yen after Greece said it will miss its deficit target set by international lender in the current and next year. The bank has exposure to bonds of Spain and Italy that has been on the decline in the last three months.

Toyota Motor decreased 2.5% to 2,568 yen and Honda Motor Co. fell 63 yen to 2,202 yen and Nissan Motor decreased 7 yen to 679 yen.

Sony Corp fell 0.7% to 1,429 yen, Panasonic Corp declined 8 yen to 715 yen and Canon Inc closed down 90 yen to 3,400 yen. Sharp Corp increased 4 yen to 642 yen.

Olympus Corp fell 34 yen to 2,272 yen. Fanuc Ltd declined 110 yen to 10,220 yen. Kyocera decreased 10 yen to 6,320 yen.

Nippon Yusen KK closed down 8 yen at 194 yen and Mitsui OSK Lines, Ltd fell 11 yen to 268 yen.