Bank of Japan Says Economy Paused; Toyota, Honda Production Falls

Nigel Thomas
22 Dec, 2011
New York City

Stocks in Tokyo traded lower as the benchmark Nikkei index declined for the first time in three days. Japan

[R]7:00 PM Tokyo – Stocks in Tokyo traded lower as the benchmark Nikkei index declined for the first time in three days. Japan’s largest automaker Toyota said global production in November decreased 3.4% from a year ago to 634,464 units.[/R]

The benchmark index Nikkei declined after the Bank of Japan issued cautious outlook on the economy and worried that the slowdown in the euro zone could adversely affect the global economy.

The Nikkei 225 Stock Average fell 0.8% to 8,395.16 and the broader Topix index decreased 0.4% to 723.12.

Bank of Japan left its key lending rate near zero and held its asset purchase program after a rate setting meeting yesterday. The central bank also added that the domestic economic recovery “has paused” because of the slowing global economy.

The accompanying statement after the two-day meeting highlighted the strength in the yen and also the ongoing turmoil in the euro zone and stated that domestic economic activity will remain “more or less flat for the time being.”

The central bank pinned its hope of economic recovery on the reconstruction-led demand after the earthquake and a pickup in emerging markets and commodities exporting countries.

Stock Movers

Toyota Motor fell 15 yen to 2,496 yen and Honda Motor Co. closed unchanged at 2,325 yen and Nissan Motor Co Ltd decreased 6 yen to 692 yen.

Japan’s largest automakers Toyota said its global output in November declined 3.4% from a year ago to 634,464. Mazda global production declined 11% and Suzuki production fell 1.7%.

Global production of Honda dropped 30% to 221,976 and domestic production plunged 38% to 54,403 units. Toyota global production decreased 3.4% to 634,464 units and domestic production increased 25% to 120,217.

Nissan global production increased 19.1% to 443,094 units and domestic production surged 25% to 120,217.

Sony Corp increased 11 yen to 1,372 yen, Panasonic Corp fell 2 yen at 648 yen and Canon Inc closed down 20 yen to 3,415 yen.

Nintendo Co. Ltd increased 140 yen to 10,680 yen and Nexon Co Ltd rebounded for the second day by 57 yen after five days of decline to 1,117 yen.

Olympus Corp decreased 32 yen to 1,018 yen after the medical devices maker’s headquarter was raided by securities regulators.

Fanuc Ltd closed down 400 yen to 11,450 yen and Kyocera fell 190 yen at 6,140 yen. Nikon Corp increased 1 yen to 1,691 yen.

Elpida Memory Inc rose 1 yen to 375 yen and Ulvac, Inc fell 27 yen to 945 yen.

Mitsui O.S.K. Lines, Ltd increased 8 yen to 296 yen, Kawasaki Kisen Kaisha, Ltd closed up 1 yen to 140 yen and Nippon Yusen K.K. increased 3 yen to 202 yen.

Daiichi Sankyo Ltd increased 4 yen to 1,519 yen and Astellas Pharma Inc closed down 10 yen at 3,085 yen.

Fast Retailing Co. decreased 160 yen to 13,600 yen.

Ms&Ad Insurance Group Holdings, Inc closed up 11 yen to 1,431 yen and NKSJ Holdings Inc rose 2 yen to 1,486 yen.

Mitsubishi UFJ Financial Group closed down 1 yen at 326 yen and Sumitomo Mitsui Financial Group decreased 13 yen to 2,164 yen.

Komatsu Ltd decreased 38 yen to 1,817 yen and Hitachi Construction Machinery Co decreased 22 yen to 1,288 yen.

Softbank Corp closed up 12 yen at 2,316 yen, KDDI rose 0.2% to 492,000 yen and NTT DoCoMo, Inc fell 0.2% to 137,200 yen.