Nikkei Down 1.8%; Mitsubishi, Mitsui Pay $2 Billion for LNG Field in Australia

Nigel Thomas
01 May, 2012
New York City

Stocks in Japan dropped in thin trading after the yen strengthened. Exporters and automakers were among the leading decliners. Mitsubishi and Mitsui agreed to take the stake in Western Australia based natural gas field for $2 billion.

[R]8:30 PM Tokyo – Stocks in Japan dropped in thin trading after the yen strengthened. Exporters and automakers were among the leading decliners. Mitsubishi and Mitsui agreed to take the stake in Western Australia based natural gas field for $2 billion.[/R]

Stocks in Tokyo trading fell sharply after the stronger yen dragged the broader markets and the uncertainty in the euro zone overshadowed the rising manufacturing index in thin trading.

The Nikkei 225 Stock Average plunged 169.94 or 1.8% to 9,350.95 and the broader Topix index dropped 14.78 or 1.8% to 789.49.

Markets in China, India, South Korea, Singapore, Taiwan and Indonesia were closed for public holidays.

The dollar declined to 79.77 yen from 79.81 yen and crude oil traded above $103 a barrel in Tokyo.

In trading, turnover declined to 1.65 billion shares from 2.2 billion shares on the main board of the Tokyo Stock Exchange.

Mitsubishi, Mitsui Buys Stake in Australian LNG Project

Mitsubishi Corp. and Mitsui & Co. Ltd., the Japanese companies agreed to buy a 14.7% stake in Woodside Petroleum Ltd.''s equity in the proposed Browse LNG Project in Western Australia for $2 billion.

Japan Australia LNG Pty Ltd, the 50-50 joint venture between Mitsui and Mitsubishi will make the deal as part of its efforts to further enhance its LNG business.

Japan is in rivalry to secure supply of natural gas as China, India and South Korea look for stable fuel sources and nuclear power takes a back seat in Japan.

Stock Movers

Kansai Electric Power Company, Inc decreased 15 yen to 1,143 yen and Tokyo Electric Power fell 4 yen to 196 yen.

Toyota Motor closed down 115 yen to 3,190 yen and Honda Motor Co. plunged 97 yen to 2,799 yen and Nissan Motor Co Ltd dropped 34 yen to 802 yen.

Sony Corp declined 51 yen to 1,265 yen. Panasonic Corp closed down 16 yen at 606 yen and Canon Inc slumped 40 yen to 3,630 yen.

Olympus Corp closed down 30 yen to 1,230 yen, Nikon plunged 73 yen to 2,320 yen and Fanuc Ltd dropped 40 yen to 13,550 yen. Hitachi Ltd decreased 18 yen to 494 yen.

Komatsu Ltd declined 90 yen to 2,225 yen and Hitachi Construction Machinery Co slumped 70 yen to 1,677 yen.

Mitsui O.S.K. Lines, Ltd decreased 16 yen to 296 yen, Kawasaki Kisen Kaisha, Ltd slipped 10 yen to 160 yen and Nippon Yusen K.K. closed down at 9 yen to 229 yen.

Nippon Electric Glass Co Ltd plunged 8.5% or 56 yen to 596 yen and Asahi Glass Co Ltd slumped 3.9% or 25 yen to 608 yen.

Fast Retailing Co. declined 330 yen to 17,600 yen and J. Front Retailing Co. Ltd unchanged to 412 yen.

Mitsubishi UFJ Financial Group decreased 13 yen to 374 yen and Sumitomo Mitsui Financial Group tumbled 77 yen to 2,507 yen. Nomura Holdings, Inc closed down 15 yen to 315 yen.

Tokyo Tatemono Co., Ltd slipped 14 yen to 284 yen and Mitsui Fudosan plunged 93 yen to 1,384 yen and Sumitomo Realty & Development Co. declined 118 yen to 1,806 yen.

Nippon Steel fell 8 yen to 193 yen and JFE Holdings Inc dropped 61 yen to 1,450 yen.