Yen Strength, Euro Worries Add to Nikkei Volatility

Nigel Thomas
24 May, 2012
New York City

Stocks in Japan traded volatile and the yen held its ground as investors focused on the Chinese manufacturing slowdown and growing uncertainties in the euro zone. Nikkei is set to decline for the eighth week in a row and has fallen 17% from its peak on March 27.

[R]8:30 PM Tokyo – Stocks in Japan traded volatile and the yen held its ground as investors focused on the Chinese manufacturing slowdown and growing uncertainties in the euro zone. Nikkei is set to decline for the eighth week in a row and has fallen 17% from its peak on March 27.[/R]

Stocks in Tokyo traded volatile after a latest private survey in China suggested further slowdown in manufacturing sector and leaders in the euro zone failed to agree on growth measures and asked member nations to make contingency plans if Greece decides to exit.

The Nikkei 225 Stock Average rose 6.78 to 8,563.38 and the broader Topix index edged up 0.68 to 722.25.

The yen firmed and closed at 79.41 against a dollar.

The market sentiment was further weakened after Ministry of Finance showed foreign investors sold a net 131.1 billion yen or $1.7 billion of Japanese stocks last week. Foreign investors sold stocks for the fifth week in a row.

Stock Movers

Kansai Electric Power Company, Inc increased 8 yen to 1,067 yen and Tokyo Electric Power rose 1 yen to 158 yen.

Exporters and automakers closed lower after the yen firmed and the rising stress in the euro zone cast a doubt on the growth prospect in the region.

Toyota Motor unchanged to 3,065 yen and Honda Motor Co. dropped 23 yen to 2,544 yen and Nissan Motor Co Ltd slides 11 yen to 755 yen.

Sony Corp increased 9 yen to 1,105 yen. Panasonic Corp closed up at 10 yen to 533 yen and Canon Inc declined 70 yen to 3,160 yen. Toshiba rose 2 yen to 305 yen.

Olympus Corp advanced 31 yen to 1,149 yen, Nikon slumped 11 yen to 2,123 yen and Fanuc Ltd advanced 110 yen to 13,360 yen. Hitachi Ltd fell 1 yen to 459 yen.

Komatsu Ltd increased 10 yen to 1,901 yen, Hitachi Construction Machinery Co gained 17 yen to 1,519 yen.

Inpex Corp rose 0.5% to 462,000 yen and Japan Petroleum Exploration Co. increased 3 yen to 2,981 yen.

Mitsui O.S.K. Lines, Ltd gained 10 yen to 275 yen; Kawasaki Kisen Kaisha, Ltd increased 7 yen to 144 yen and Nippon Yusen K.K. closed up at 2 yen to 206 yen.

Nippon Electric Glass Co Ltd fell 1 yen to 510 yen and Asahi Glass Co Ltd closed down at 3 yen to 551 yen.

Renesas Electronics Corp advanced 1.9% after the chipmaker confirmed it plans to work with Taiwan Semiconductor Manufacturing Co.

Fast Retailing Co. increased 110 yen to 16,820 yen and J. Front Retailing Co. Ltd fell 2 yen to 365 yen.

Mitsubishi UFJ Financial Group rose 3 yen to 342 yen and Sumitomo Mitsui Financial Group gained 13 yen to 2,323 yen. Nomura Holdings, Inc closed up at 2 yen to 261 yen.

Credit Saison Co Ltd increased 7 yen to 1,570 yen.

Tokyo Tatemono Co., Ltd edged up 1 yen to 245 yen and Mitsui Fudosan gained 22 yen to 1,262 yen and Sumitomo Realty & Development Co. advanced 34 yen to 1,651 yen.

Nippon Steel rose 1 yen to 178 yen and JFE Holdings Inc increased 9 yen to 1,307 yen.