Japan Stocks Edge Lower; Canon Trims Outlook

Nigel Thomas
25 Oct, 2011
New York City

Stocks in Japan declined and Canon lowered its fiscal year operating earnings outlook on Thai floods. Flood waters are expected to hit Bangkok tomorrow and domestic airport cancelled all flights and death toll was revised higher.

[R]6:00 PM Tokyo – Stocks in Japan declined and Canon lowered its fiscal year operating earnings outlook on Thai floods. Flood waters are expected to hit Bangkok tomorrow and domestic airport cancelled all flights and death toll was revised higher.[/R]

The Nikkei 225 Stock Average fell 23.69 or 0.3% to 8,843.98 and the broader Topix index fell 1% to 747.70.

The yen retreated to 76.50 from a record of 76.30 against one dollar in Friday’s trading.

In trading, 1.44 billion shares changed hands on the main board of Tokyo Stock Exchange compared to 1.34 billion shares in Monday’s trading.

Thai Prime Minister Yingluck Shinawatra declared five-day holiday in Bangkok so that residents can cope with the flood waters.

Flood waters seeped in the domestic airport and forced the cancellation of flights but international airport is safe. Seven districts in Bangkok are flooded but most of the city remains dry, according to the flood monitoring agency.

The official death toll was increased to 366 and more than 700,000 employees are not able to access 1,400 factories in at least seven industrial estates in northern and northeastern Thailand.

Stock Movers

Toto Ltd declined 4.3% or 29 yen to 648 yen after the ceramic toilet fixtures maker lowered its net income estimate by 7.7% to 12 billion yen in the current fiscal year.

Toyota Motor decreased 44 yen to 2,536 yen and Honda Motor Co. fell 13 yen to 2,342 yen and Nissan Motor Co Ltd decreased 7 yen to 691 yen.

Mazda Motor Corp added 5 yen to 157 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.

Sony Corp increased 15 yen to 1,551 yen, Panasonic Corp fell 3 yen to 781 yen and Canon Inc decreased 65 yen to 3,490 yen.

Canon said Thai floods will lower its annual sales by 50 billion yen and operating profit by 20 billion yen to 360 billion yen in the current financial year to December 2011.

Nidec Corp decreased 50 yen to 6,150 yen and TDK Corp soared 88 yen to 3,055 yen.

Nissen Holdings Co., Ltd increased 4 yen to 528 yen after the mail-order business operator said nine month net income plunged 47% to 716 million yen on the accounting charge.

Olympus Corp surged 8% or 90 yen to 1,189 yen. Fanuc Ltd decreased 380 yen to 12,160 yen. Kyocera closed down 30 yen at 7,120 yen.

DeNA Co. fell 1.1% to 3,180 yen after the company is expected to pay 10 billion yen to acquire Yokohama BayStars professional baseball team from Tokyo Broadcasting System, Inc.

Tokyo Broadcasting decreased 2.9% to 935 yen after it confirmed the discussions with DeNA Co.

Corona Corp increased 4% or 56 yen to 1,468 yen after the heaters and air-conditioners makers said first half to September net income increased to 900 million yen.

The Tokyo Electric Power Company increased 31 yen to 315 yen, Tohoku Electric Power decreased 33 yen to 950 yen and the Kansai Electric Power fell 16 yen to 1,194 yen.

Mitsui OSK Lines, Ltd decreased 11 yen to 292 yen, Kawasaki Kisen Kaisha, Ltd closed down 4 yen at 149 yen and Nippon Yusen K.K. decreased 6 yen at 194 yen.

Dai-ichi Life rose 0.8% to 84,000 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 fell 1.6% or 25 yen to 1,522 yen and NKSJ Holdings Inc declined 7 yen to 1,571 yen.

Mitsubishi UFJ Financial Group fell 4 yen to 334 yen and Sumitomo Mitsui Financial Group decreased 32 yen to 2,132 yen.

Hitachi Zosen declined to 1 yen to 106 yen after the shipbuilders lowered its operating profit outlook for the six months to September to 1.6 billion yen from 4 billion yen and cut its revenues estimate to 125 billion yen from 134 billion yen.

Mitsubishi Corp decreased 4 yen to 1,531 yen and Mitsui & Co, Ltd increased 14 yen to 1,113 yen. Marubeni Corp increased 3 yen to 432 yen.

Komatsu Ltd increased 55 yen to 1,833 yen and Hitachi Construction Machinery Co increased 38 yen to 1,433 yen.

Bridgestone Corp increased 8 yen to 1,772 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.

The company also said in its five year plan it plans to increase its operating profit to 10% of sales in the fiscal year 2016 from 5.8% in fiscal 2011.