Nikkei Eases 1.1% as Volume Drops, Nomura Extend Losses

Nigel Thomas
23 Mar, 2012
New York City

Stocks in Tokyo fell as investors avoided adding to net positions after worries of recession in the euro zone added to the soft landing concerns in China. Exporters and China linked stocks declined. Nomura extended 2-day losses to 7%.

[R]8:30 PM Tokyo – Stocks in Tokyo fell as investors avoided adding to net positions after worries of recession in the euro zone added to the soft landing concerns in China. Exporters and China linked stocks declined. Nomura extended 2-day losses to 7%.[/R]

Stocks in Japan closed dropped the most in one day in last eight weeks and the yen strengthened as trading volume fell to a 2-month low.

The Nikkei 225 Stock Average dropped 115.61 or 1.1% to close at 10,011.47 and the broader Topix index decreased 9.54 or 1.1% to 852.53. For the week, the Nikkei declined 1.2%.

The dollar fell to 82.87 yen and reached one week high of 82.39 yen in intra-day trading and the euro gained to 108.49 yen from its close on Friday at 110.44.

Trading volume declined to 1.76 billion stocks down from 2 billion stocks on Thursday and 1,097 stocks closed higher and 438 declined.

Stock Movers

Toyota Motor closed down 70 yen to 3,465 yen and Honda Motor Co. decreased 95 yen to 3,180 yen and Nissan Motor Co Ltd decreased 23 yen to 855 yen.

Yokohama Rubber Co. closed down 6 yen to 584 yen and Bridgestone Corp dropped 32 yen to 1,993 yen.

Electronics exporters and China linked companies declined after the latest data on Chinese manufacturing.

Sony Corp decreased 54 yen to 1,680 yen, Panasonic Corp closed down 18 yen at 745 yen and Canon Inc closed down 30 yen to 3,870 yen. Nintendo Co. Ltd decreased 420 yen to 12,650 yen.

Olympus Corp decreased 29 yen to 1,311 yen, Nikon increased 7 yen to 2,447 yen and Fanuc Ltd closed down 150 yen to 15,020 yen. Hitachi Ltd fell 0.7% to 500 yen.

Komatsu Ltd decreased 45 yen to 2,344 yen, Hitachi Construction Machinery Co decreased 28 yen to 1,795 yen and Toyo Engineering Corp closed up 2 yen at 391 yen.

Shipping companies rested after a 5-month old rally lifted stocks beyond what most investors feel can be supported by fundamentals.

Mitsui O.S.K. Lines, Ltd decreased 10 yen to 357 yen, Kawasaki Kisen Kaisha, Ltd closed down 1 yen to 175 yen and Nippon Yusen K.K. fell 3 yen to 257 yen.

Fast Retailing Co. dropped 150 yen to 18,030 yen and J. Front Retailing Co. Ltd closed down 2 yen to 441 yen.

Mitsubishi UFJ Financial Group decreased 9 yen to 426 yen and Sumitomo Mitsui Financial Group decreased 45 yen to 2,828 yen. Nomura Holdings, Inc decreased 15 yen to 376 yen and extended losses to 7% in two days after internal controls at the company were under investigation.

Tokyo Tatemono Co., Ltd decreased 9 yen to 326 yen and Mitsui Fudosan decreased 30 yen to 1,559 yen and Sumitomo Realty & Development Co. decreased 34 yen to 1,922 yen.

Nippon Steel fell 4 yen to 228 yen and JFE Holdings Inc decreased 2.3% or 42 yen to 1,751 yen.