Nikkei in Tokyo Declines 2.2%; Sony Estimates Loss

Nigel Thomas
02 Nov, 2011
New York City

Stocks in Tokyo trading fell as investors turned cautious after worries on the euro zone and Greek referendum rose. Sony estimate annual loss of $1.2 billion on the rising yen and weak television sales. Shipping companies declined on the falling freight rates.

[R]7:00 PM Tokyo – Stocks in Tokyo trading fell as investors turned cautious after worries on the euro zone and Greek referendum rose. Sony estimate annual loss of $1.2 billion on the rising yen and weak television sales. Shipping companies declined on the falling freight rates.[/R]

Stocks in Tokyo traded lower after international markets eased and worries mounted on the euro zone. Greek government will seek a confidence vote on Friday and asked a popular vote to approve its recently agreed bailout conditions with the European Union.

The surprise decision shocked markets and put most investors and politicians on the defensive.

The Nikkei 225 Stock Average fell 2.2% to 8,640.42 and the broader Topix index declined 2.1% to 738.58.

Toyota U.S. Sales plunges 33%

Toyota Motor sales in October decreased 7.9% to 134,046 from 145,474 in the same period a year earlier. Sales of the cars fell 4.1% to 72,653 from 75,765 and light trucks decreased 11.9% to 61,393 from 69,709 a year ago.

Honda sales in the month fell 0.5% to 98,333 from 98,811 a year ago. For the year so far, sales decreased 5.3% to 958,130 from 1,011,247. Sales of cars in the month decreased 7.4% to 48,027 from 51,881 and sales of the light trucks increased 7.2% to 50,306 compared to 46,930 a year ago.

Nissan Motor Company vehicles sales in the month increased 18% to 82,346 from 69,773 a year ago. For the year so far, sales increased 15.2% to 0.85 million from 0.74 million. October cars sales increased 18.4% and sales of the light trucks increased 17.4% from a year ago.

Thai Floods Death Toll Rises to 427

Thailand’s Department of Disaster Prevention and Mitigation increased the deal toll from floods to 427 today and said 26 provinces are still affected.

Bangkok Governor Sukhumbhand Paribatra ordered police to protect the wall that prevents to flood water entering the industrial estates were foreign manufacturers are located.

Residents near the canal destroyed the part of the levee so the flood waters can run through the neighborhoods but that can also damage the factories in the industrial estates.

Thailand has been hit hard as flood water ravage one third of the nation. Thai authorities are hoping that the diverting water from western and eastern parts of Bangkok will prevent the inner city area from flooding.

The irrigation workers are struggling to fix canal gates and a decline in sea levels after peak tides at 2.44 meter helped to drain water from Chao Phraya River.

Stock Movers

Toyota Motor decreased 91 yen to 2,505 yen and Honda Motor Co. fell 102 yen to 2,304 yen and Nissan Motor Co Ltd fell 20 yen to 701 yen.

Automakers are struggling to revive production after parts shortages build as Thai floods ravage several production locations. Honda plans to trim production in Brazil, Philippines and UK and halt production at six factories in Canada and U.S. in the week ending November 10.

Sony Corp decreased 56 yen to 1,520 yen, Panasonic Corp fell 29 yen to 739 yen and Canon Inc increased 75 yen to 3,480 yen. Nintendo Co. Ltd declined 170 yen to 11,610 yen.

Olympus Corp decreased 6 yen to 1,200 yen and traded near its lows last seen in November of 1999.

Fanuc Ltd decreased 110 yen to 12,350 yen and Kyocera closed down 290 yen at 6,630 yen and Sharp Corp fell 29 yen to 689 yen.

Mitsui OSK Lines, Ltd decreased 17 yen to 274 yen, Kawasaki Kisen Kaisha, Ltd closed down 9 yen to 149 yen and Nippon Yusen K.K. fell 6 yen to 189 yen.

Dai-ichi Life fell 5.2% to 83,600 yen after Greece decided put its deal with the European Union to a referendum that may delay the implementation of terms of the agreement.

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

MS & AD Insurance Group Holdings, Inc fell 3.2% or 50 yen to 1,487 yen and NKSJ Holdings Inc fell 29 yen to 1,518 yen.

Mitsubishi UFJ Financial Group fell 8 yen to 334 yen and Sumitomo Mitsui Financial Group decreased 48 yen to 2,144 yen.

Mitsubishi Corp decreased 51 yen to 1,550 yen and Mitsui & Co, Ltd fell 18 yen to 1,104 yen. Marubeni Corp decreased 10 yen to 449 yen.

Komatsu Ltd decreased 97 yen to 1,843 yen and Hitachi Construction Machinery Co decreased 41 yen to 1,455 yen.