Canon, Toyota, Nikon Suffer Production Delays On Thai Floods

Nigel Thomas
14 Oct, 2011
New York City

Stocks in Japan declined as more companies curtail production after Bangkok industrial area suffer one of the worst flood damages in the recent years. Toyota Motor extended production halts at three factories in Thailand. Olympus fired its British born chief executive.

[R]6:00 PM Tokyo – Stocks in Japan declined as more companies curtail production after Bangkok industrial area suffer one of the worst flood damages in the recent years. Toyota Motor extended production halts at three factories in Thailand. Olympus fired its British born chief executive.[/R]

Stocks in Japan decline on the growing worries in the euro zone and widespread damage to industrial locations in Thailand as floods spread to more areas.

Several Japanese companies are forced to shut down production or not access sites as more than one third of Thailand is underwater and lack of power in northern and northeastern Thailand.

Banks and financials gained after the euro zone leaders promised quicker action to recapitalize banks and Slovakia voted to expanded rescue fund contribution.

Olympus fired its British born chief executive after board disapproved his management style and replaced him with the chairman.

The Nikkei 225 Stock Average decreased 0.9% to 8,747.96 and the broader Topix index fell 1.3% to 748.81.

The yen edged higher to 77.07 from 77.27 against one dollar and fell to 113.25 yen against one euro.

Trading volume decreased to 1.56 billion shares on the main board of the Tokyo Stock Exchange from the average of 1.86 billion shares last week.

Thailand floods continue to wreak havoc on vast areas in Thai countryside. At least 300 people have been killed after heavy monsoon rains and mudslides in the last two months and water levels are rising around the capital city Bangkok.

Toyota Motor said it will extend production halt at three of its factories in Thailand till October 22.

Thai Prime Minister Yingluck Shinawatra reassured Bangkok residents that the capital will largely be spared from the worst damage of the flood. Finance ministry lowered its estimate of the economic growth to 3.7% from 4% and estimated flood damages of 1% of GDP.

The water levels in Thailand are expected to rise no more than 2.3 meter high, below the dike level of 2.4 meter around October 15 and 16. Director general of Royal Irrigation Department Chalit Damrongsak said water flows from the north into the Chao Phraya river are so far running below the estimate.

Stock Movers

Toyota Motor decreased 44 yen to 2,556 yen and Honda Motor Co. fell 54 yen to 2,248 yen and Nissan Motor Co Ltd decreased 12 yen to 713 yen.

Sony Corp decreased 31 yen to 1,531 yen, Panasonic Corp rose 14 yen to 742 yen and Canon Inc closed down 90 yen to 3,445 yen. Sharp Corp declined 10 yen to 683 yen.

Olympus Corp dropped 18% or 437 yen to 2,045 yen. Fanuc Ltd decreased 20 yen to 11,950 yen. Kyocera decreased 60 yen to 6,930 yen.

The Tokyo Electric Power Company increased 2 yen to 219 yen, Tohoku Electric Power decreased 42 yen to 942 yen and the Kansai Electric Power fell 23 yen to 1,174 yen.

Mitsui OSK Lines, Ltd decreased 2 yen to 307 yen, Kawasaki Kisen Kaisha closed down 3 yen at 156 yen and Nippon Yusen K.K. rose 3 yen at 205 yen.

Mitsubishi UFJ Financial Group fell 5 yen to 335 yen and Sumitomo Mitsui Financial Group decreased 31 yen to 2,128 yen.

Mitsubishi Corp decreased 20 yen to 1,560 yen and Mitsui & Co, Ltd closed unchanged at 1,122 yen. Marubeni Corp decreased 1 yen to 429 yen.

Komatsu Ltd decreased 37 yen to 1,733 yen and Hitachi Construction Machinery Co decreased 31 yen to 1,405 yen.

Dai-ichi Life fell 2% to 85,100 yen after Slovakian leaders agreed to approve the contribution to the expanded rescue fund and European leaders urged for a quicker action on the bank recapitalization plan.