Nikkei in Tokyo Declined 1.2%; Honda Earnings Worries

Nigel Thomas
13 Dec, 2011
New York City

The benchmark index in Tokyo declined 1.2% after investors reassessed the EU summit fiscal compact failed to produce immediate steps to contain debt contagion. Honda declined on the worries that it may lower its annual earnings outlook. Olympus is set to file revised financial statements.

[R]7:00 PM Tokyo – The benchmark index in Tokyo closed lower after investors reassessed the EU summit fiscal compact failed to produce immediate and specific steps to contain debt contagion. Honda declined on the worries that it may lower its annual earnings outlook. Olympus is set to file its revised financial statements.[/R]

Stocks in Japan wavered and closed down on a regional weakness after markets in Europe and New York at least 1.8%.

Investors are increasingly factoring rising volatility and economic weakness in the euro zone and market jitters were compounded after two ratings agencies expressed negative views.

Moody’s placed most of the debt ratings of the euro zone nations on the watch and Fitch Ratings said lack of specific solutions after the summit to the immediate crisis in the region will add short term pressures on the sovereign ratings.

The Nikkei 225 Stock Average fell 1.2% to 8,552.81 and the broader Topix index declined 0.8% to 740.71.

Trading volume on the main board of Tokyo Stock Exchange increased to 1.65 billion shares from 1.52 billion shares on Monday and of the shares traded 588 increased and 912 decreased.

Stock Movers

Toyota Motor decreased 30 yen to 2,587 yen and Honda Motor Co. fell 71 yen to 2,384 yen and Nissan Motor Co Ltd declined 7 yen to 690 yen.

Honda fell on the worries that the company may be forced to revise lower its annual earnings outlook after Toyota cut its annual net outlook by more than half on the supply chain problems linked to Thai floods. Honda relies more on parts and supplies at its factories in Thailand and has is scheduled to release its quarterly earnings in late January.

Sony Corp fell 37 yen to 1,386 yen, Panasonic Corp declined 11 yen at 695 yen and Canon Inc closed down 35 yen to 3,465 yen. Nintendo Co. Ltd increased 130 yen to 11,180 yen.

Olympus Corp increased 70 yen to 1,370 yen and the troubled camera and medical equipment maker is scheduled to file its revised financial statements tomorrow.

Fanuc Ltd closed down 340 yen to 12,440 yen and Kyocera closed down 150 yen at 6,560 yen. Nikon Corp fell 38 yen to 1,691 yen.

Elpida Memory Inc added 12 yen to 431 yen and Ulvac, Inc fell 14 yen to 1,106 yen.

Mitsui O.S.K. Lines, Ltd fell 8 yen to 291 yen, Kawasaki Kisen Kaisha, Ltd closed up 2 yen to 146 yen and Nippon Yusen K.K. added 1 yen at 196 yen.

Daiichi Sankyo Ltd fell 17 yen to 1,445 yen and Fast Retailing Co. decreased 210 yen to 12,820 yen.

Ms&Ad Insurance Group Holdings, Inc closed up 13 yen to 1,472 yen and NKSJ Holdings Inc added 9 yen to 1,541 yen.

Mitsubishi UFJ Financial Group closed down 10 yen at 338 yen and Sumitomo Mitsui Financial Group decreased 34 yen to 2,239 yen.

Komatsu Ltd decreased 37 yen to 1,962 yen and Hitachi Construction Machinery Co decreased 37 yen to 1,370 yen.

Tokyo Electric Power Co decreased 1 yen to 235 yen as investors await more details on the company’s plan to attract new capital or cut its debt to banks.

Softbank Corp fell 22 yen to 2,402 yen, KDDI rose 0.5% to 496,000 yen and NTT DoCoMo, Inc added 0.4% to 137,300 yen.