Nikkei Drifts Lower; Nintendo Rebounds

Nigel Thomas
25 Nov, 2011
New York City

Stocks in Tokyo trading declined and the benchmark Nikkei index dropped 2.6% in the week and plunged 20% in the year so far. Nikon began replacing parts made elsewhere after it shuttered Thai factory and Nintendo edged up on robust sales of hand held game devices.

[R]7:00 PM Tokyo – Stocks in Tokyo trading declined and the benchmark Nikkei index dropped 2.6% in the week and plunged 20% in the year so far. Nikon began replacing parts made elsewhere after it shuttered Thai factory and Nintendo edged up on robust sales of hand held game devices.[/R]

Stocks in Tokyo continued to drift lower as weary investors avoided adding exposure to exporters and banks.

The benchmark index dropped to the lowest in the month and traded at the lows last seen in November.

Shipping companies traded near new 10-year lows for the fourth day in a row and the benchmark index has dropped 20% from the peak in February and down the same for the year.

The Nikkei 225 Stock Average decreased 0.1% to 8,160.01 and the broader Topix index rose 0.1% to 706.60. For the week the Nikkei declined 2.6%.

The yen at close in Tokyo trading fell 0.2% to 77.66 per U.S. dollar.

Trading volume increased to 1.50 billion from 1.49 billion shares on Thursday and lower than the last week’s average of 1.74 billion shares. In trading, 564 shares gained and 922 declined.

Stock Movers

Toyota Motor increased 37 yen to 2,413 yen and Honda Motor Co. rose 25 yen to 2,221 yen and Nissan Motor Co Ltd decreased 1 yen to 656 yen.

Sony Corp increased 1 yen to 1,332 yen, Panasonic Corp closed down 1 yen at 685 yen and Canon Inc rose 65 yen at to 3,330 yen.

Nintendo Co. Ltd rose 310 yen or 2.9% to 11,170 yen on reports that its new 3DS game Super Mario Bros. is enjoying brisk sales and lifted hopes of higher sales of its game console. In the first three weeks of sales, the new handheld devices sold 340,000 units according to local media reports.

Olympus Corp increased 88 yen or 8.6% to 1,107 yen after three board members resigned ahead of the meeting with the ex-chief executive Michael Woodford and said most board members do not want the company to be delisted.

Fanuc Ltd decreased 50 yen to 11,800 yen and Kyocera closed up 30 yen at 6,410 yen. Nikon Corp added 46 yen to 1,739 yen.

Nikon gained after a report that the company has began replacing lenses made in Thailand after it closed its main factory as floods ravage one third of the nation.

Elpida Memory Inc surged 7.9% to 383 yen and Ulvac Inc added 5% to 905 yen on positive comments from a SMBC Nikko Securities.

Shipping companies traded near 10-year lows as freight companies struggle with business.

Mitsui O.S.K. Lines, Ltd rose 6 yen to 226 yen, Kawasaki Kisen Kaisha, Ltd added 4 yen to 123 yen and Nippon Yusen K.K. gained 5 yen at 159 yen.

Dai-ichi Life decreased 1,700 yen to 78,100 yen.

Ms&Ad Insurance Group Holdings, Inc added 29 yen to 1,459 yen and NKSJ Holdings Inc rose 15 yen to 1,470 yen.

Mitsubishi UFJ Financial Group was flat at 320 yen and Sumitomo Mitsui Financial Group increased 9 yen to 2,038 yen.

Komatsu Ltd decreased 7 yen to 1,811 yen and Hitachi Construction Machinery Co increased 6 yen to 1,285 yen.