Market Updates

Japan's Exports Fall; Cargo Shippers at 10-year Low

Nigel Thomas
21 Nov, 2011
New York City

    Stocks in Japan fell as exports in October declined and the nation swung to a deficit in the month. Bank of Japan said it purchase more stock index linked ETFs and REITs that will support equities prices. Shipping companies dropped to a new 10-year low and auto makers stocks dig deeper into losses.

[R]8:00 PM Tokyo – Stocks in Japan fell as exports in October declined and the nation swung to a deficit in the month. Bank of Japan said it purchase more stock index linked ETFs and REITs that will support equities prices. Shipping companies dropped to a new 10-year low and auto makers stocks dig deeper into losses in the year.[/R]

Stocks in Japan traded lower following a weakness in regional markets and ongoing worries in the euro zone. Investors sold stocks after October exports fell and the U.S. debt panel is expected to not agree on spending cuts and debt cuts that are hoped for by the markets before the deadline this Wednesday.

In Europe, financial markets forced changes on the Portugal, Italy, Greece, Ireland and Spain after leaders failed to agree on debt reforms and cut spending. Spain, the third country to change its government in two weeks in Europe saw its government bond yields rise above Italian bond yields on Friday.

The Spain’s general election were brought forward from March next year after Prime Minister Jose Rodriguez Zapatero decided to step down This weekend his Socialist Party lost election and right wing Popular Party led by Mariano Rajoy is expected to form a new government as early as next month.

However, Spanish bond yield rose to 6.7% and spreads to German bunds widened to 450 basis points.

The Nikkei 225 Stock Average decreased 0.3% to 8,348.27 and the broader Topix index fell 0.4% to 717.08.

Trading volume decreased to 1.23 billion from 1.45 billion shares on Friday and lower than the weekly average of 1.74 billion shares. Shares worth 755.7 billion changed hands.

Bank of Japan said today it purchased on Friday 700 million yen of REITs and 16.4 billion yen of exchange traded funds. The central bank’s continued purchase in the market provided support to prices.

Japan Swung to Trade Deficit in October

Japan’s merchandise trade deficit was 273.79 billion yen in October, following the downwardly revised surplus of 296.2 billion yen in September, the Ministry of Finance said on Monday.

Exports fell 3.7% and imports surged an annual 17.9% in October and exports of semiconductor plunged 21% and volatile and high ticket items like container and bulk transport ships dropped 32%.

Overseas shipments to China fell 7.7% while those to U.S. dropped 2.3%. The exports decline also reflected ongoing supply disruptions linked to Thai floods.

Stock Movers

Automakers have lost at least 30% from the peak in the first week in July on supply chain disruptions linked to Thailand, strong yen and weak exports to the euro zone.

Toyota Motor decreased 63 yen to 2,385 yen and Honda Motor Co. fell 49 yen to 2,153 yen and Nissan Motor Co Ltd decreased 20 yen to 653 yen.

Toyota has lost 36% since July 8 peak, Nissan has declined 23% and Honda has fallen 31%.

Sony Corp decreased 37 yen to 1,266 yen, Panasonic Corp closed down 14 yen at 672 yen and Canon Inc fell 10 yen at to 3,340 yen.

Nintendo Co. Ltd rose 10 yen to 11,630 yen.

Olympus Corp increased 100 yen or 16% to 725 yen and was among the most actively traded stock on the Tokyo Stock Exchange. Investigators are honing on the transactions for the payment of companies that have no revenues and may have linkages to organized criminals.

However, today Nippon Life Insurance President Yoshinobu Tsutsui said the company will continue to support the camera maker.

Last week, insurance company said it cut its holding in the company to 5.1% from 8.2% according to a regulatory filing. Mitsubishi UFJ Financial affiliated entities lowered their holdings to 7.61% from 10%, according to a regulatory filing.

Fanuc Ltd decreased 260 yen to 12,180 yen and Kyocera closed down 20 yen at 6,540 yen. Nikon Corp fell 32 yen to 1,701 yen.

Elpida Memory Inc decreased 7.3% to 319 yen after October exports of memory plunged.

Shipping companies dropped to new 10-year lows for the third day in a row on the worries linked to the euro zone and the freight rate to Europe declined.

Mitsui OSK Lines, Ltd fell 17 yen to 228 yen, Kawasaki Kisen Kaisha, Ltd declined 5 yen to 197 yen and Nippon Yusen K.K. decreased 5 yen at 161 yen.

Dai-ichi Life decreased 200 yen to 77,500 yen.

Property and Casualty insurers remain in focus as Thailand struggles with the rising flood losses and Japan accelerates efforts to rebuild the tsunami affected region.

MS & AD Insurance Group Holdings, Inc fell 56 yen to 1,434 yen and NKSJ Holdings Inc fell 4 yen to 1,497 yen.

Mitsubishi UFJ Financial Group fell 2 yen at 323 yen and Sumitomo Mitsui Financial Group increased 2 yen to 2,053 yen.

Komatsu Ltd decreased 10 yen to 1,915 yen and Hitachi Construction Machinery Co decreased 37 yen to 1,339 yen.

Annual Returns

Company Ticker 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

Earnings

Company Ticker 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008