Nikkei Extend Losses; Foreign Investors Cut Net Positions

Nigel Thomas
29 Mar, 2012
New York City

The benchmark index declined for the second day and extended two-day losses to 1.5%. Foreign investors cut stock positions last week after adding for twelve weeks in a row. Sharp advanced for the second day after it sold a stake to Taiwan based Hon Hai Precision.

[R]8:30 PM Tokyo – The benchmark index declined for the second day and extended two-day losses to 1.5%. Foreign investors cut stock positions last week after adding for twelve weeks in a row. Sharp advanced for the second day after it sold a stake to Taiwan based Hon Hai Precision.[/R]

Stocks in Tokyo edged lower for the second day after stocks traded ex-dividend and losses to 1.5%.

Bank of Japan helped avoid larger declines after it bought 26.6 billion yen of exchange traded funds.

Ministry of Finance said foreign investors sold a net of 242.7 billion yen or $2.9 billion in the week ending March 23 after adding stocks for 12 weeks in a row.

The Nikkei 225 Stock Average decreased 67.78 to close at 10,114.79 and the broader Topix index fell 6.69 to 857.74.

The dollar rose to 82.25 yen and traded at a new 2-week high and the euro gained to 109.92 yen.

Stock Movers

Sharp soared for the second day by 6.6% to 608 yen and extended 2-day gains to 15% after it agreed to sell a stake in the company to Taiwan based Hon Hai and its founder Terry Gou for 133 billion yen or $808 million.

Toyota Motor closed down 60 yen to 3,575 yen and Honda Motor Co. dropped 70 yen to 3,175 yen and Nissan Motor Co Ltd decreased 16 yen to 877 yen.

Tokyu Corp declined 2% to 390 yen after the rail and bus operator estimated operating profit that missed some analysts’ view.

Sony Corp decreased 27 yen to 1,746 yen, Panasonic Corp closed down 9 yen at 773 yen and Canon Inc closed down 40 yen to 3,950 yen. Nintendo Co. Ltd declined 120 yen to 12,660 yen.

Olympus Corp gained 23 yen to 1,354 yen, Nikon decreased 18 yen to 2,515 yen and Fanuc Ltd closed down 280 yen to 15,110 yen. Hitachi Ltd decreased 2.2% to 529 yen.

Komatsu Ltd decreased 81 yen to 2,330 yen, Hitachi Construction Machinery Co decreased 65 yen to 1,840 yen and Toyo Engineering Corp closed down 8 yen at 388 yen.

Mitsui O.S.K. Lines, Ltd fell 2 yen to 363 yen, Kawasaki Kisen Kaisha, Ltd closed up 2 yen to 178 yen and Nippon Yusen K.K. unchanged to 262 yen.

Fast Retailing Co. soared 280 yen to 18,630 yen and J. Front Retailing Co. Ltd closed up 3 yen to 456 yen.

Mitsubishi UFJ Financial Group decreased 10 yen to 420 yen and Sumitomo Mitsui Financial Group dropped 42 yen to 2,773 yen. Nomura Holdings, Inc decreased 5 yen to 374 yen.

Tokyo Tatemono Co., Ltd rose 1 yen to 338 yen and Mitsui Fudosan decreased 8 yen to 1,592 yen and Sumitomo Realty & Development Co. rose 1 yen to 2,006 yen.

Nippon Steel decreased 7 yen at 227 yen and JFE Holdings Inc declined 2.9% or 54 yen to 1,777 yen.