Stocks in Japan Decline; Nissin, Olympus Fall, Fanuc Rises

Nigel Thomas
26 Oct, 2011
New York City

Stocks in Japan declined as investors focused on the domestic earnings and rising flood waters in Bangkok. European leaders later in the day are expected to announce details of the bank recap plan. Hitachi Ltd reported earnings larger five times estimated.

[R]6:00 PM Tokyo – Stocks in Japan declined as investors focused on the domestic earnings and rising flood waters in Bangkok. European leaders later in the day are expected to announce details of the bank recap plan. Hitachi Ltd reported earnings larger five times estimated.[/R]

The Nikkei 225 Stock Average fell 13.84 or 0.2% to 8,748.47 and the broader Topix index fell 0.2% to 746.48.

The yen retreated to 75.70 from a record of 76.20 against one dollar in Friday’s trading.

Thai Prime Minister Yingluck Shinawatra declared five-day holiday in Bangkok so that residents can cope with the flood waters and Education Ministry closed schools until November 7.

Many residents of the Bangkok jammed bus stations and highways to flee the city and waters begin to rise in many parts of the city.

Flood waters are expected to reach many regions in the city and water levels are expected to rise between 4 inches and 5 feet.

The official death toll was increased on Monday 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

Toyota Motor decreased 8 yen to 2,528 yen and Honda Motor Co. fell 13 yen to 2,329 yen and Nissan Motor Co Ltd decreased 1 yen to 690 yen.

Mazda Motor Corp added 2 yen to 159 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 14 yen to 1,565 yen, Panasonic Corp gained 1 yen to 782 yen and Canon Inc increased 20 yen to 3,510 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.

Hard disk technology and materials makers rose on the expectation of higher production and sales as Thailand begins the process of recovery next week.

Nidec Corp increased 390 yen to 6,540 yen, TDK Corp soared 255 yen to 3,310 yen and Minebea Co, Ltd increased 16 yen to 286 yen.

Nissen Holdings Co., Ltd decreased 39 yen to 489 yen after the mail-order business operator said nine month net income plunged 47% to 716 million yen on the accounting charge.

Nissin Electric Co. Ltd declined 31 yen after the electrical substations equipment maker lowered full year net income forecast to 4.6 billion yen.

Olympus Corp fell 8% or 90 yen to 1,099 yen. Fanuc Ltd increased 350 yen to 12,510 yen. Kyocera closed down 30 yen at 7,090 yen.

Olympus may face regulatory inquiry in Japan and fired chief executive said he is in talks with the Federal Bureau of Investigations in the U.S. The company is also likely to press a legal fight with the recalcitrant ex-chief executive.

Fanuc Corp revised its current fiscal year outlook by 25% to 150 billion yen according to a release to the Tokyo Stock Exchange.

DeNA Co. rose 1.1% to 3,215 yen after the company is expected to pay 10 billion yen to acquire Yokohama BayStars professional baseball team from Tokyo Broadcasting System, Inc.

The Tokyo Electric Power Company increased 5 yen to 320 yen, Tohoku Electric Power decreased 9 yen to 941 yen and the Kansai Electric Power fell 2 yen to 1,192 yen.

Hitachi Limited soared 15 yen to 424 yen after the company said its earnings were five times larger than its previous estimate on the speedier recovery from the March earthquake.

Mitsui OSK Lines, Ltd increased 7 yen to 299 yen, Kawasaki Kisen Kaisha, Ltd closed unchanged at 149 yen and Nippon Yusen K.K. closed flat at 194 yen.

Nippon Steel declined 5 yen to 204 yen after the company said higher raw materials cost and stronger yen knocked the profit down by more than half.

Dai-ichi Life rose 1.6% to 85,400 yen as European leaders struggle to find a way to increase the rescue fund and release details of the plan later today.

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

MS & AD Insurance Group Holdings, Inc fell 1% or 15 yen to 1,507 yen and NKSJ Holdings Inc declined 12 yen to 1,559 yen.

Mitsubishi UFJ Financial Group fell 3 yen to 331 yen and Sumitomo Mitsui Financial Group decreased 6 yen to 2,126 yen.

Mitsubishi Corp decreased 5 yen to 1,526 yen and Mitsui & Co, Ltd fell 6 yen to 1,107 yen. Marubeni Corp increased 1 yen to 433 yen.

Komatsu Ltd increased 10 yen to 1,843 yen and Hitachi Construction Machinery Co decreased 7 yen to 1,426 yen.