Nikkei Loses 1.5% and Down 12% in Ten Weeks

Nigel Thomas
09 May, 2012
New York City

Stocks in Tokyo traded lower and the Nikkei index fell 1.5% to a new 3-monthl low. In the last ten week the index has dropped 12%. Toyota guided sharply higher operating profit after the close and NTT Data reported lower than expected annual operating income.

[R]8:30 PM Tokyo – Stocks in Tokyo traded lower and the Nikkei index fell 1.5% to a new 3-monthl low. In the last ten week the index has dropped 12%. Toyota guided sharply higher operating profit after the close and NTT Data reported lower than expected annual operating income.[/R]

Stocks in Tokyo extended losses and the benchmark index declined 1.5% to a new 3-month low on the growing euro zone worries.

The leader of the second largest party in the newly elected parliament avoided to form a coalition with parties that supported European bailout and sought to “null” the agreement.

Two main parties in Greece failed to win popular support in the weekend election and fall short of three of 151 seats combined in a 300-member parliament.

The Nikkei 225 Stock Average declined 136.59 or 1.5% to 9,045.06 and the broader Topix index slipped 10.74 to 765.83.

Stock Movers

Kansai Electric Power Company, Inc declined 24 yen to 1,033 yen and Tokyo Electric Power unchanged to 184 yen.

Toyota Motor closed unchanged to 3,145 yen and Honda Motor Co. gained 10 yen to 2,729 yen and Nissan Motor Co Ltd decreased 13 yen to 777 yen.

After the close, Toyota guided operating profit in the current year to jump three fold and in the latest quarter gained five-fold to $3 billion.

Sony Corp increased 11 yen to 1,228 yen. Panasonic Corp closed up at 10 yen to 587 yen and Canon Inc plunged 60 yen to 3,485 yen.

Olympus Corp declined 39 yen to 1,115 yen, Nikon dropped 38 yen to 2,250 yen and Fanuc Ltd tumbled 300 yen to 13,330 yen. Hitachi Ltd decreased 4 yen to 476 yen.

Panasonic Corp added 1.7% on media speculation that the company may estimate current year net income of 50 billion yen compared to an estimated loss of 780 million in the year to March.

NTT Data Corp dropped 12% after the company estimated full-year operating profit of 85 billion yen, less than expected by analysts.

Komatsu Ltd plunged 87 yen to 2,060 yen and Hitachi Construction Machinery Co dropped 56 yen to 1,566 yen.

Inpex Corp decreased 2.7% to 488,500 yen and Japan Petroleum Exploration Co. slumped 2.1% to 3,365 yen.

Mitsui O.S.K. Lines, Ltd fell 6 yen to 286 yen, Kawasaki Kisen Kaisha, Ltd slipped 3 yen to 148 yen and Nippon Yusen K.K. closed down at 4 yen to 216 yen.

Nippon Electric Glass Co Ltd decreased 6 yen to 569 yen and Asahi Glass Co Ltd fell 5 yen to 586 yen.

Fast Retailing Co. slides 260 yen to 16,890 yen and J. Front Retailing Co. Ltd down 4 yen to 397 yen.

Mitsubishi UFJ Financial Group slipped 6 yen to 360 yen and Sumitomo Mitsui Financial Group declined 44 yen to 2,420 yen. Nomura Holdings, Inc closed down 6 yen to 286 yen.

Tokyo Tatemono Co., Ltd slumped 10 yen to 264 yen and Mitsui Fudosan declined 34 yen to 1,325 yen and Sumitomo Realty & Development Co. plunged 45 yen to 1,740 yen.

Nippon Steel fell 3 yen to 187 yen and JFE Holdings Inc dropped 39 yen to 1,361 yen.