Two Month Slump of 16% in Nikkei in Tokyo

Nigel Thomas
25 May, 2012
New York City

Stocks in Tokyo traded sideways and the Nikkei index declined for the eighth week in a row and extended losses to 16% from the peak in late March. Japan Tobacco agreed to acquire Belgium based cigarette maker Gryson NV for $600 million.

[R]8:00 PM Tokyo – Stocks in Tokyo traded sideways and the Nikkei index declined for the eighth week in a row and extended losses to 16% from the peak in late March. Japan Tobacco agreed to acquire Belgium based cigarette maker Gryson NV for $600 million.[/R]

Stocks in Tokyo edged up at close but for the week declined and extended losses to 16% from March peak. Investors have been on the sidelines with the rising prospects of a slowdown in exports to the euro zone and Chinese banks struggle to offer new loans.

The Nikkei 225 Stock Average closed up 0.2% 17.01 to 8,580.39 and the broader Topix index inched down 0.14 to 722.11.

The Nikkei index declined 0.4% for the week and extended losses to 16% from the peak on March 27 and as global markets sell off on the rising worries in the euro zone and a slowdown in China.

Stock Movers

Japan Tobacco surged 5% after the company confirmed that it has agreed to acquire Belgium based cigarettes maker Gryson NV for 475 million euros or $595 million. The move is expected to diversify the tobacco company’s reliance from the domestic market.

Kansai Electric Power Company, Inc increased 16 yen to 1,083 yen and Tokyo Electric Power fell 2 yen to 156 yen.

Toyota Motor unchanged to 3,065 yen and Honda Motor Co. decreased 4 yen to 2,540 yen and Nissan Motor Co Ltd unchanged to 755 yen.

Sony Corp declined 50 yen to 1,055 yen. Panasonic Corp closed down at 6 yen to 527 yen and Canon Inc advanced 70 yen to 3,230 yen. Toshiba slides 7 yen to 298 yen.

Olympus Corp slumped 23 yen to 1,126 yen, Nikon shrank 28 yen to 2,095 yen and Fanuc Ltd unchanged to 13,360 yen. Hitachi Ltd fell 2 yen to 457 yen.

Komatsu Ltd dropped 29 yen to 1,872 yen, Hitachi Construction Machinery Co decreased 15 yen to 1,504 yen.

Inpex Corp slides 1.8% to 453,500 yen and Japan Petroleum Exploration Co. declined 58 yen to 2,923 yen.

Mitsui O.S.K. Lines, Ltd fell 4 yen to 271 yen; Kawasaki Kisen Kaisha, Ltd down 3 yen to 141 yen and Nippon Yusen K.K. closed down at 2 yen to 204 yen.

Nippon Electric Glass Co Ltd decreased 10 yen to 500 yen and Asahi Glass Co Ltd closed down at 11 yen to 540 yen.

Renesas Electronics Corp extended gains for the second day by 1.8% to 273 yen after the chipmaker confirmed it plans to work with Taiwan Semiconductor Manufacturing Co.

Fast Retailing Co. advanced 400 yen to 17,220 yen and J. Front Retailing Co. Ltd rose 4 yen to 369 yen.

Mitsubishi UFJ Financial Group unchanged to 342 yen and Sumitomo Mitsui Financial Group dropped 24 yen to 2,299 yen. Nomura Holdings, Inc closed down at 1 yen to 260 yen.

Credit Saison Co Ltd slumped 22 yen to 1,548 yen.

Tokyo Tatemono Co., Ltd edged up 3 yen to 248 yen and Mitsui Fudosan advanced 23 yen to 1,285 yen and Sumitomo Realty & Development Co. increased 30 yen to 1,681 yen.

Nippon Steel fell 4 yen to 174 yen and JFE Holdings Inc dropped 51 yen to 1,256 yen.