Nikkei Extends Losses; Osaka and Tokyo Exchanges Merge

Nigel Thomas
22 Nov, 2011
New York City

The benchmark index Nikkei in Tokyo trading declined to the lowest level since March 2009 as the high yen and persistent debt worries in the euro zone and the U.S. dented hopes of higher exports. Osaka Securities agreed to merge with the Tokyo Stock Exchange.

[R]7:00 PM Tokyo – The benchmark index Nikkei in Tokyo trading declined to the lowest level since March 2009 as the high yen and persistent debt worries in the euro zone and the U.S. dented hopes of higher exports. Osaka Securities agreed to merge with the Tokyo Stock Exchange.[/R]

The benchmark index in Tokyo closed lower and declined to the lowest since March 2009. The strong yen, persistent euro zone debt worries and a growing consensus that the reckless U.S. lawmakers are more interested in reelection than lowering the towering debt.

The U.S. debt exceeds $15 trillion and is expected to reach $20 trillion by 2020 if debt cuts are not put in place. The Iraq and Afghanistan wars have contributed more than $2 trillion to the debts in the last ten years.

The Nikkei 225 Stock Average decreased 0.4% to 8,314.74 and the broader Topix index rose 0.1% to 717.79.

The yen at close in Tokyo trading declined 0.6% to fetch 104 for one euro and fell 0.3% to 77.08 per U.S. dollar.

Trading volume increased to 1.51 billion from 1.23 billion shares on Monday and lower than the weekly average of 1.74 billion shares. In trading, 857 shares gained and 643 declined.

Stock Movers

Osaka Securities Exchange Co Ltd soared 4.5% to 440,500 yen after the exchange agreed to merge with the larger Tokyo Stock Exchange. The merge price was below the TSE offer price of 480,000 yen.

The new exchange will have combined value of stocks listed of $12 trillion and is set to begin operation in January 2013.

Toyota Motor increased 2 yen to 2,387 yen and Honda Motor Co. rose 42 yen to 2,195 yen and Nissan Motor Co Ltd increased 12 yen to 665 yen.

Toyota has lost 36% since July 8 peak, Nissan has declined 21% and Honda has fallen 30%.

Sony Corp increased 39 yen to 1,305 yen, Panasonic Corp closed up 8 yen at 680 yen and Canon Inc fell 35 yen at to 3,305 yen.

Nintendo Co. Ltd fell 280 yen to 11,350 yen.

Olympus Corp increased 144 yen or 20% to 869 yen after the independent panel investigating the latest transactions said it found no link to criminal groups so far.

Fanuc Ltd decreased 80 yen to 12,260 yen and Kyocera closed up 10 yen at 6,550 yen. Nikon Corp fell 1 yen to 1,702 yen.

Elpida Memory Inc increased 1% to 322 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 rose 1 yen to 229 yen, Kawasaki Kisen Kaisha, Ltd declined 3 yen to 125 yen and Nippon Yusen K.K. decreased 3 yen at 158 yen.

Dai-ichi Life increased 900 yen to 78,400 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 rose 17 yen to 1,451 yen and NKSJ Holdings Inc fell 6 yen to 1,491 yen.

Mitsubishi UFJ Financial Group rose 1 yen at 324 yen and Sumitomo Mitsui Financial Group increased 15 yen to 2,068 yen.

Komatsu Ltd decreased 20 yen to 1,895 yen and Hitachi Construction Machinery Co decreased 9 yen to 1,330 yen.