Investors Await BoJ Comments in Tokyo, Rakuten Dropped 4%

Nigel Thomas
23 Apr, 2012
New York City

Stocks and broader indexes in Tokyo fell ahead of comments from the Bank of Japan on Friday. Investors were cautious and speculation mounted that the central bank may expand its $800 billion asset purchase program. Rakuten, the largest e-commerce website operator shut down its site in China.

[R]8:30 PM Tokyo – Stocks in Tokyo decreased and the broader indexes fell ahead of comments from the Bank of Japan on Friday. Investors were cautious and speculation mounted that the central bank may expand its $800 billion asset purchase program. Rakuten, the largest e-commerce website operator shut down its site in China.[/R]

Stocks declined in Tokyo trading ahead of the Bank of Japan comments this Friday. Speculation mounted in the domestic media that the central bank will expand its asset purchase program as the yen strengthened and the economy remains stuck in the low gear.

The Nikkei 225 Stock Average slipped 19.19 to 9,542.17 and the broader Topix index edged down 2.40 to 809.54.

Over the weekend, finance leaders of G20 nations agreed to provide additional capital of $430 billion that will be directed in increased lending in the euro zone. The capital raising directed to a specific region is against the charter of the IMF and investors have still not forgotten the inept and biased handling by the maligned multi-lateral agency of the Asian crisis in the late nineties.

Investors also noticed a slight improvement in the latest read on China’s manufacturing according to a private survey but the sector is still shrinking.

China''s manufacturing activity shrank for the sixth straight month in April according to a private survey. The HSBC/Markit purchasing managers'' index rose to 49.1 in April from 48.3 in March.

The manufacturing output index rose to 49.1 in April from 47.3 in March.

Stock Movers

Alternative energy producers traded higher after a report in the Nikkei business news paper indicated that the government is looking to form a feed-in tariff rate of 42 yen per kilowatt-hour for electricity generated from alternative sources.

Kansai Electric Power Company, Inc declined 53 yen to 1,206 yen and Tokyo Electric Power fell 5 yen to 197 yen.

Yakult Honsha Co., Ltd soared 12% after Kyodo News reported France based Danone may increase its stake in the Japanese drink maker to 28% from the current 20%.

Toyota Motor closed down 30 yen to 3,265 yen and Honda Motor Co. gained 14 yen to 2,880 yen and Nissan Motor Co Ltd decreased 8 yen to 836 yen.

Sony Corp slipped 10 yen to 1,353 yen and extended losses for the sixth day in a row after the recently appointed company chief laid out a new restructuring plan.

Panasonic Corp closed down 5 yen at 633 yen and Canon Inc soared 25 yen to 3,785 yen. Nintendo Co. Ltd dropped 30 yen to 11,370 yen.

Olympus Corp closed down 34 yen to 1,252 yen, Nikon slumped 42 yen to 2,308 yen and Fanuc Ltd tumbled 140 yen to 14,530 yen. Hitachi Ltd decreased 10 yen to 526 yen.

Komatsu Ltd gained 9 yen to 2,403 yen and Hitachi Construction Machinery Co fell 4 yen to 1,809 yen.

Rakuten, Inc, the largest e-commerce site operator in Japan, declined 4% after said it will close down its website in China on lower than expected sales.

Toyo Engineering Corp closed down 5 yen to 367 yen.

Mitsui Chemicals Inc decreased 4% after the chemical maker said there was an explosion at its glue making facility that killed at least one employee and injured 20 more.

Mitsui O.S.K. Lines, Ltd slipped 6 yen to 319 yen, Kawasaki Kisen Kaisha, Ltd decreased 8 yen to 165 yen and Nippon Yusen K.K. closed down at 4 yen to 237 yen.

Fast Retailing Co. tumbled 530 yen to 18,060 yen and J. Front Retailing Co. Ltd fell 5 yen to 423 yen.

Mitsubishi UFJ Financial Group edged down 4 yen to 392 yen and Sumitomo Mitsui Financial Group dropped 13 yen to 2,634 yen. Nomura Holdings, Inc unchanged to 345 yen.

Tokyo Tatemono Co., Ltd closed down 3 yen to 299 yen and Mitsui Fudosan declined 21 yen to 1,483 yen and Sumitomo Realty & Development Co. slumped 18 yen to 1,831 yen.

Nippon Steel unchanged to 202 yen and JFE Holdings Inc soared 2.5% or 40 yen to 1,597 yen.