Tokyo Stocks Struggle, Nexon IPO Raises $1.2 Billion

Nigel Thomas
14 Dec, 2011
New York City

Nikkei index Japan eased as markets in Asia fell and commodities eased. Revised financial statements from Olympus showed that the company was solvent in each of the last five year period, avoiding worst fears of investors. Nexon, the online gaming company raised $1.2 billion in a public offering.

[R]7:00 PM Tokyo – Stocks in Japan retreated as markets in Asia declined and commodities eased. Revised financial statements from Olympus showed that the company was solvent in each of the last five year period, avoiding worst fears of investors. Nexon, the online gaming company raised $1.2 billion in a public offering.[/R]

Japanese stocks declined following the weakness in Asian markets and commodities edged lower in Asian trading.

U.S. Federal Reserve left its key lending rate near zero and held its bond purchase program and offered no new stimulus. The rates have been near zero for nearly three years and the Fed in its latest assessment highlighted slow and uneven recovery in the economy but also said weakness in the housing market will persist and jobs market improvement will be slow.

The Nikkei 225 Stock Average declined 0.4% to 8,519.13 and the broader Topix index declined 0.5% to 736.98.

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.

Olympus Lowers Net Assets

Olympus showed in it restated earnings that net assets declined to 84 billion yen at the end of June and dropped further to 48 billion at the end of September.

The company also booked a net loss of 32.33 billion yen for the six month through September and its auditors KPMG AZSA said in a qualified report that it was “unable to get sufficient and appropriate proof for auditing on specific assets and accounts.”

Olympus’s former ex-chief executive Michael C. Woodford is increasingly viewed with a suspicion that he may be actively looking to sell the company to private equity funds.

Stock Movers

Toyota Motor decreased 9 yen to 2,578 yen and Honda Motor Co. fell 53 yen to 2,331 yen and Nissan Motor Co Ltd declined 1 yen to 689 yen.

Sony Corp fell 21 yen to 1,365 yen, Panasonic Corp added 2 yen at 697 yen and Canon Inc closed down 40 yen to 3,425 yen. Nintendo Co. Ltd decreased 50 yen to 11,130 yen.

Nexon, the online gaming firm Nexon Co traded sideways on its first day of trading after it raised $1.2 billion in public offering. Nexon priced its shares at 1,300 yen a share and closed down at 1,270 yen.

Gree declined 2.7% and DeNa Co dropped 4.3% to 2,277 yen

Olympus Corp decreased 56 yen to 1,314 yen and the company’s revised financial statements showed that in the last five years at no point its liabilities exceeded its assets and the company remained solvent in the period.

Fanuc Ltd closed down 160 yen to 12,280 yen and Kyocera closed down 70 yen at 6,490 yen. Nikon Corp fell 4 yen to 1,687 yen.

Elpida Memory Inc fell 4 yen to 427 yen and Ulvac, Inc fell 28 yen to 1,078 yen.

Mitsui O.S.K. Lines, Ltd fell 2 yen to 289 yen, Kawasaki Kisen Kaisha, Ltd closed up 1 yen to 147 yen and Nippon Yusen K.K. closed flat 196 yen.

Daiichi Sankyo Ltd rose 11 yen to 1,456 yen and Fast Retailing Co. increased 160 yen to 12,980 yen.

Ms&Ad Insurance Group Holdings, Inc closed up 13 yen to 1,485 yen and NKSJ Holdings Inc added 8 yen to 1,549 yen.

Mitsubishi UFJ Financial Group closed down 5 yen at 333 yen and Sumitomo Mitsui Financial Group decreased 9 yen to 2,230 yen.

Komatsu Ltd decreased 26 yen to 1,936 yen and Hitachi Construction Machinery Co decreased 16 yen to 1,354 yen.

Tokyo Electric Power Co decreased 2 yen to 233 yen.

Softbank Corp rose 24 yen to 2,426 yen, KDDI fell 0.3% to 494,500 yen and NTT DoCoMo, Inc fell 0.6% to 136,500 yen.