Nikkei Struggles in Japan; Olympus Executives Arrested

Nigel Thomas
16 Feb, 2012
New York City

The Nikkei index in Japan closed lower as Greek negotiations drag on and oil prices rise. However, metals and other commodities edged lower. Three former executives of Olympus were arrested by Tokyo police for the accounting scandal.

[R]8:30 PM Tokyo – The Nikkei index in Japan closed lower as Greek negotiations drag on and oil prices rise. However, metals and other commodities edged lower. Three former executives of Olympus were arrested by Tokyo police for the accounting scandal.[/R]

Stocks in Tokyo traded lower from the 24-month high after worries about Greek negotiations and a drop in commodities prices took the center stage. However, investors are increasingly betting that the recent rally has legs after the firmness in the financials and automakers.

The Nikkei 225 Stock Average decreased 0.2% to 9,238.10 and the broader Topix index lost 0.3% to 800.25. For the year so far, the Nikkei increased 9.3% and is one of the best performing index in Asia and ahead of most indexes in Europe and in the U.S.

The yen weakened to 78.55 against the dollar after the Bank of Japan expanded its asset purchase and lending program.

Stock Movers

Toyota Motor closed unchanged at 3,265 yen and Honda Motor Co. declined 6 yen to 2,882 yen and Nissan Motor Co Ltd fell 10 yen to 777 yen.

Sony Corp increased 14 yen to 1,589 yen, Panasonic Corp rose 18 yen to 682 yen and Canon Inc closed up 5 yen to 3,535 yen. Nintendo Co. Ltd surged 1.3% 11,430 yen.

Olympus Corp closed decreased 31 yen at 1,273 yen and three former executives including former chairman Tsuyoshi Kikukawa were arrested by Tokyo police.

Fujifilm Holdings Corp closed down 2 yen at 1,896 yen.

Nikon decreased 41 yen 2,048 yen, Fanuc Ltd decreased 160 yen to 13,860 yen and Kyocera fell 60 yen at 6,830 yen.

Freight shipping companies declined after freight rate index fell for the first time since February in London trading.

Mitsui O.S.K. Lines, Ltd closed down 10 yen to 353 yen, Kawasaki Kisen Kaisha, Ltd closed down 6 yen at 178 yen and Nippon Yusen K.K. closed down 7 yen to 238 yen.

Tokio Marine Holdings Inc rose 42 yen to 2,199 extended gains for the second day after it reiterated annual earnings yesterday.

The Tokyo Electric Power Company, Inc increased 8 yen to 217 yen on the speculation that the government permit restart of the nuclear power plant as the government lowers oil imports from Iran.

Fast Retailing Co. decreased 150 yen to 15,970 yen and J. Front Retailing Co. Ltd closed down 3 yen to 375 yen.

Mitsubishi UFJ Financial Group decreased 7 yen to 401 yen and Sumitomo Mitsui Financial Group closed fell 36 yen at 2,667 yen. Nomura Holdings, Inc was flat at 334 yen. Daiwa Securities Group Inc increased 2.3% to 309 yen.

GCA Savvian Group Corp dropped 6.6% to 89,500 yen after the merger advisory firm estimated operating profit to declined 43% to 2.43 billion yen.

Komatsu Ltd increased 42 yen to 2,280 yen, Hitachi Construction Machinery Co increased 27 yen to 1,577 yen and Toyo Engineering Corp rose was unchanged at 322 yen.

Softbank Corp fell 2 yen at 2,386 yen, KDDI Corp closed up 4% to 516,000 yen and NTT DoCoMo, Inc closed down 100 yen to 136,800 yen.