Nikkei Gains Evaporate, Nippon Yusen Targets Logistics Sales Growth

Nigel Thomas
02 Jul, 2012
New York City

The strength in the yen in the last one hour of trading evaporated most of the gains of 1% in the benchmark Nikkei. Exporters and electronics makers turned lower. Nippon Yusen guided higher revenues on forwarding and warehousing business.

[R]6:30 PM Tokyo – The strength in the yen in the last one hour of trading evaporated most of the gains of 1% in the benchmark Nikkei. Exporters and electronics makers turned lower. Nippon Yusen guided higher revenues on forwarding and warehousing business.[/R]

Stocks in Tokyo were caught in cross currents of domestic news and international worries and pared most of the gains by the end of the day.

The benchmark Nikkei index rose as much as 1.2% in the morning trading but reversed in the final hour as the yen gained. Investors pinned the hopes on the Friday’s pact among European leaders to support banking system in the euro zone but searched for details.

On the domestic front, the latest Tankan survey of large businesses for the quarter ending in June released by the Bank of Japan showed an improvement for the first time in three quarters. The index improved to minus 1 in June from minus 4 in March.

The Nikkei 225 Stock Average slid 3.30 to 9,003.48 and the broader Topix index edged down 0.74 to 769.34.

The yen edged higher to 79.50 against one dollar and fell to 100.37 against the euro.

Stock Movers

Yamada Denki declined 4.5% to 3,870 yen after two brokers lowered their views and price target on the retailer.

Nitori Holdings Co decreased 1.6% to 7,420 yen, apparel retailer Shimamura slipped 1.5% to 9,070 yen and Sagami Co declined 4 yen to 122 yen. Marushohotta Co rose 2 yen and Edion Corp up 0.2% to 400 yen.

Fast Retailing Co. gained 80 yen to 15,960 yen and J. Front Retailing Co. Ltd fell 2 yen to 397 yen.

Kajima Corp fell 0.9% to 231 yen and Taisei Corp added 2.3% to 218 yen. Sekisui House Ltd up 0.1% to 749 yen and Daito Trust Construction Co Ltd rose 0.4% to 7,580 yen.

Tokyo Tatemono Co., Ltd increased 6 yen to 303 yen and Mitsui Fudosan fell 2 yen to 1,528 yen and Sumitomo Realty & Development Co. slumped 14 yen to 1,927 yen.

Kansai Electric Power Company, Inc slipped 9 yen to 946 yen and Tokyo Electric Power down 2 yen to 152 yen.

Toyota Motor slid 15 yen to 3,175 yen and Honda Motor Co. decreased 19 yen to 2,730 yen and Nissan Motor Co Ltd fell 5 yen to 743 yen.

Sony Corp decreased 6 yen to close at 1,117 yen and Panasonic Corp closed down at 14 yen to 629 yen. Toshiba rose 2 yen to 302 yen.

Olympus Corp increased 12 yen to 1,300 yen, Nikon slumped 17 yen to 2,385 yen and Fanuc Ltd declined 110 yen to 12,840 yen. Canon Inc closed down at 10 yen to 3,155 yen.

Komatsu Ltd dropped 16 yen to 1,862 yen and Hitachi Construction Machinery Co slid 22 yen to 1,462 yen.

Inpex Corp rose 0.3% to 446,000 yen and Japan Petroleum Exploration Co. advanced 15 yen to 3,035 yen.

Mitsui O.S.K. Lines, Ltd added 2 yen to 286 yen; Kawasaki Kisen Kaisha, Ltd up 1 yen to 157 yen and Nippon Yusen K.K. increased 5 yen to 214 yen after President Yasumi Kudo targeted total sales of as much as 800 billion yen by fiscal 2019 on the strength in warehousing and freight forwarding division.

Mitsubishi UFJ Financial Group rose 2 yen to 380 yen and Sumitomo Mitsui Financial Group increased 5 yen to 2,617 yen. Nomura Holdings, Inc added 2 yen to 296 yen.

Credit Saison Co Ltd closed up 18 yen to 1,775 yen.

Nippon Steel added 1 yen to 180 yen and JFE Holdings Inc unchanged to 1,318 yen.