Nikkei in Japan Steady, Renesas Plunged 11%

Nigel Thomas
28 May, 2012
New York City

Stocks in Tokyo gained and Renesas Electronics plunged 11% after the company plans to eliminate 12,000 jobs and raise $1.3 billion. In light trading stocks generally drifted up. Nomura was linked to second insider trading case and Sumitomo Heavy confirmed it was suspended from a defense contract.

[R]8:30 PM Tokyo – Stocks in Tokyo closed higher and Renesas Electronics plunged 11% after the company plans to eliminate 12,000 jobs and raise $1.3 billion. In light trading stocks generally drifted higher. Nomura was linked to second insider trading case and Sumitomo Heavy confirmed it was suspended from a defense contract.[/R]

Stocks in Tokyo steadied after eight weeks of losses on the hopes that Greece will elect parties at the next election in three weeks that will elect to stay in the euro zone and put in place austerity measures.

The Nikkei 225 Stock Average closed up 12.76 to 8,593.15 and the broader Topix index inched down 1.0 to 721.11.

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

Renesas Electronics dropped 11% to 244 yen after the company confirmed that it plans to sell its loss making units and eliminate 12,000 jobs.

Nomura Holdings declined 1 yen to 259 yen after the largest securities brokerage house was linked to a second insider trading scandal involving asset management division of Sumitomo Mitsui Trust Holdings Inc.

Japan Tobacco extended gains for the second day by 0.9% to 451,500 yen after the company agreed to acquire Belgium based cigarettes maker Gryson NV for 475 million euros or $595 million on Friday.

Sumitomo Heavy Industries Ltd dropped 4 yen to 340 yen after the defense contractor confirmed that its contract was suspended by the defense ministry on the over reporting of expenses.

Kansai Electric Power Company, Inc increased 8 yen to 1,091 yen and Tokyo Electric Power decreased 4 yen to 152 yen.

Toyota Motor gained 5 yen to 3,070 yen and Honda Motor Co. decreased 4 yen to 2,536 yen and Nissan Motor Co Ltd inched down 1 yen to 754 yen.

Sony Corp slipped 7 yen to 1,048 yen. Panasonic Corp closed down at 11 yen to 516 yen and Canon Inc advanced 50 yen to 3,280 yen. Toshiba rose 2 yen to 300 yen.

Olympus Corp increased 7 yen to 1,133 yen, Nikon slides 4 yen to 2,091 yen and Fanuc Ltd gained 270 yen to 13,630 yen. Hitachi Ltd fell 2 yen to 455 yen.

Komatsu Ltd increased 20 yen to 1,892 yen, Hitachi Construction Machinery Co added 3 yen to 1,507 yen.

Inpex Corp rose 0.3% to 455,000 yen and Japan Petroleum Exploration Co. gained 4 yen to 2,927 yen.

Mitsui O.S.K. Lines, Ltd fell 2 yen to 269 yen; Kawasaki Kisen Kaisha, Ltd closed down 2 yen to 139 yen and Nippon Yusen K.K. edged down 1 yen to 203 yen.

Nippon Electric Glass Co Ltd unchanged to 500 yen and Asahi Glass Co Ltd rose 2 yen to 542 yen.

Fast Retailing Co. advanced 370 yen to 17,590 yen and J. Front Retailing Co. Ltd fell 3 yen to 366 yen.

Mitsubishi UFJ Financial Group added 1 yen to 343 yen and Sumitomo Mitsui Financial Group increased 14 yen to 2,313 yen. Nomura Holdings, Inc closed down at 1 yen to 259 yen.

Credit Saison Co Ltd gained 25 yen to 1,573 yen.

Tokyo Tatemono Co., Ltd unchanged to 248 yen and Mitsui Fudosan advanced 25 yen to 1,310 yen and Sumitomo Realty & Development Co. fell 3 yen to 1,678 yen.

Nippon Steel down 2 yen to 172 yen and JFE Holdings Inc slide 16 yen to 1,240 yen.