Nikkei in Tokyo Drops 1.2%

Nigel Thomas
01 Jun, 2012
New York City

Stocks in Japan extended losses as economic slowdown worries in China and U.S. added to a list of market worries. The benchmark Nikkei index turned negative for the year after 10.3% loss in May. Exporters and resources stocks were on the defensive.

[R]8:00 PM Tokyo – Stocks in Japan extended losses as economic slowdown worries in China and U.S. added to a list of market worries. The benchmark Nikkei index turned negative for the year after 10.3% loss in May. Exporters and resources stocks were on the defensive.[/R]

Market indexes in Tokyo extended losses after weak economic data from China and U.S. dragged market sentiment.

World markets plunged in May after rising worries in the euro zone and slowing economies in the region and China and India dragged market sentiment.

Indexes in the U.S. dropped more than 6% in the month and in Europe fell between 6% and 9% and indexes in Hong Kong plunged more than 11% as Chinese economic growth slows and bank lending flattens. The Nikkei index in Japan dropped 10.3% in the month and the benchmark ASX 200 index plunged 7.3%.

The Nikkei 225 Stock Average declined 102.48 or 1.2% to 8,440.25 and the broader Topix index slides 10.56 or 1.5% to 708.93. For the year, the Nikkei turned negative after a brutal month of May.

In trading, stock turnover jumped to 10-week high with 2.3 billion shares changing hands, higher than 1.62 billion shares in yesterday’s trading.

Stock Movers

Renesas Electronics plunged 10% or 25 yen to 225 yen as the chipmaker traded volatile and struggles to arrange financing from a Taiwan based chip maker.

Kansai Electric Power Company, Inc declined 51 yen to 1,083 yen and Tokyo Electric Power fell 2 yen to 156 yen.

Chubu Electric Power decreased 1.1%, Shikoku Electric Power Co plummeted 5.9% and Hokkaido Electric Power slumped by 5%.

Exporters continued to weaken as euro zone turmoil weaken the markets in Spain and Italy and banks face increasing withdrawals in two nations.

Toyota Motor dropped 30 yen to 3,010 yen and Honda Motor Co. declined 53 yen to 2,459 yen and Nissan Motor Co Ltd slipped 23 yen to 735 yen.

Sony Corp declined 37 yen to close at 1,013 yen, Panasonic Corp closed down at 12 yen to 508 yen and Canon Inc shrank 100 yen to 3,050 yen. Toshiba slides 13 yen to 282 yen.

Olympus Corp advanced 43 yen to 1,300 yen, Nikon rose 4 yen to 2,188 yen and Fanuc Ltd declined 360 yen to 13,160 yen. Hitachi Ltd decreased 12 yen to 437 yen.

Komatsu Ltd plummeted 80 yen to 1,798 yen, Hitachi Construction Machinery Co shrank 63 yen to 1,449 yen.

Energy companies declined after crude oil plunged in May and for the year declined 18% in Asian trading. The immediate month delivery futures of the oil are trading at a two-year low.

Inpex Corp slides 2.9% to 439,500 yen and Japan Petroleum Exploration Co. dropped 101 yen to 2,934 yen.

Mitsui O.S.K. Lines, Ltd slipped 14 yen to 263 yen; Kawasaki Kisen Kaisha, Ltd decreased 8 yen to 137 yen and Nippon Yusen K.K. shrank 11 yen to 199 yen.

Nippon Electric Glass Co Ltd fell 3 yen to 487 yen and Asahi Glass Co Ltd decreased 12 yen to 516 yen.

Fast Retailing Co. advanced 280 yen to 17,770 yen and J. Front Retailing Co. Ltd fell 3 yen to 365 yen.

Janome Sewing Machine Co. soared 17% to 62 yen after the Nikkei newspaper speculated that operating profit in the current fiscal year is expected to more than double.

Mitsubishi UFJ Financial Group slipped 3 yen to 337 yen and Sumitomo Mitsui Financial Group decreased 5 yen to 2,284 yen. Nomura Holdings, Inc closed down at 7 yen to 252 yen.

Credit Saison Co Ltd decreased 9 yen to 1,490 yen.

Tokyo Tatemono Co., Ltd closed down at 4 yen to 249 yen and Mitsui Fudosan rose 4 yen to 1,312 yen and Sumitomo Realty & Development Co. slumped 16 yen to 1,632 yen.

Nippon Steel slides 7 yen to 169 yen and JFE Holdings Inc declined 46 yen to 1,226 yen.