Thai Floods Hamper Japanese Auto, Electronics Production; Nikkei Flat

Nigel Thomas
21 Oct, 2011
New York City

Stocks in Japan closed unchanged and for the week gained 0.8%. More than 400 Japanese factories are submerged in Thailand after floods devastate one third provinces and Bangkok face rising waters. Property and casualty insurers declined on higher losses linked to Thai floods.

[R]6:00 PM Tokyo – Stocks in Japan closed unchanged and for the week gained 0.8%. More than 400 Japanese factories are submerged in Thailand after floods devastate one third provinces and Bangkok face rising waters. Property and casualty insurers declined on higher losses linked to Thai floods.[/R]

The Nikkei 225 Stock Average decreased 3.3 to 8,678.89 and rose for the week 0.8% and the broader Topix index fell 0.2% to 744.21.

The yen edged higher to 77.61 from 77.86 against one dollar and fell to 104.15 yen against one euro.

Thai Prime Minister Yingluck Shinawatra invoked special civil powers under the natural disaster laws as Bangkok residents face flood waters in the next 24 hours.

The struggling nation increased to death toll to 342 and more than 14,000 factories are affected from the flood according to the labor ministry.

Japan External Trade Organization or Jetro President Setsuo Luchi said at least 400 Japanese companies controlled facilities are submerged and several more are expected to suffer as flood waters race to eastern Bangkok.

At least 7,000 Japanese businesses have set up operations in Thailand in the last 25 years and many may be forced to relocate to India or Indonesia.

Stock Movers

Toyota Motor decreased 8 yen to 2,547 yen and Honda Motor Co. fell 9 yen to 2,295 yen and Nissan Motor Co Ltd decreased 5 yen to 692 yen.

Mazda Motor Corp added 2 yen to 158 yen and the automaker said it will suspend its production in Thailand till October 22 and not sure how it will restart production after October 25.

Panasonic decided against the plasma display panel plant conversion to solar panel plant on the strength of the yen and stiff competition from Chinese makers.

Sony Corp increased 12 yen to 1,556 yen, Panasonic Corp rose 23 yen to 776 yen and Canon Inc increased 35 yen to 3,495 yen.

Olympus faced pressure from its largest shareholders as the company struggles to explain large payments to “advisors” for the purchase of UK based Gyrus Group Plc.

Olympus Corp dropped 6.8% or 90 yen to 1,231 yen, the low last seen in March 2009. Fanuc Ltd increased 280 yen to 12,170 yen. Kyocera closed up 70 yen at 7,010 yen.

DeNA Co. fell 2.3% to 3,105 yen after the company is expected to pay 10 billion yen to acquire Yokohama BayStars professional baseball team.

The Tokyo Electric Power Company decreased 29 yen to 263 yen, Tohoku Electric Power increased 15 yen to 995 yen and the Kansai Electric Power fell 1 yen to 1,215 yen.

Mitsui OSK Lines, Ltd decreased 1 yen to 298 yen, Kawasaki Kisen Kaisha, Ltd closed unchanged at 149 yen and Nippon Yusen K.K. fell 5 yen at 199 yen.

Mitsubishi UFJ Financial Group fell 2 yen to 335 yen and Sumitomo Mitsui Financial Group decreased 6 yen to 2,140 yen.

Mitsubishi Corp decreased 38 yen to 1,478 yen and Mitsui & Co, Ltd decreased 36 yen to 1,057 yen. Marubeni Corp decreased 3 yen to 413 yen.

Enplas Corp soared 8.6% to 1,561 yen after the maker of products from engineering plastics and composite materials said its net loss for six months to September was 250 million yen compared to its previous estimate of 450 million yen loss.

Komatsu Ltd increased 6 yen to 1,706 yen and Hitachi Construction Machinery Co increased 3 yen to 1,329 yen.

Bridgestone Corp declined 2.5% to 1,695 yen and the company is planning to spend as much as 1.2 trillion yen in the next five years to increase its production of mining and construction equipment tires.

Steel makers were on the decline after shipbuilders are expected to ask for cheaper steel prices in the upcoming negotiations in the few weeks.

JFE Holdings Inc decreased 1.4% to 1,402 yen and Nippon Steel Corp declined 1.4% to 210 yen.

Dai-ichi Life fell 2.3% to 80,100 yen as European leaders struggle to find a way to increase the rescue fund and start a six day marathon meetings that will end on Wednesday.

Property and Casualty insurers declined on the mounting losses related to Thailand floods.

MS & AD Insurance Group Holdings, Inc dropped 3.7% or 59 yen to 1,518 yen and NKSJ Holdings Inc declined 2.7% or 43 yen to 1,551 yen.