Nikkei Slides Ahead of BoJ Meeting

Nigel Thomas
11 Jul, 2012
New York City

Stocks in Tokyo extended losses for the fifth day and the yen traded at 97 against euro and 79.21 against a dollar as the currency continued its advance for the last five weeks. Electronic chip equipment makers dropped after sales warning from Applied Materials.

[R]7:00 PM Tokyo – Stocks in Tokyo extended losses for the fifth day and the yen traded at 97 against euro and 79.21 against a dollar as the currency continued its advance for the last five weeks. Electronic chip equipment makers dropped after sales warning from Applied Materials.[/R]

On light trading volume in Tokyo, stocks extended losses for the fifth day in a row.

Tech stocks were in focus after Applied Materials cut its annual sales and net earnings outlook and Advanced Micro Devices reported a decline in sales.

Exporters to Europe also were under pressure after the yen traded near its recent high against the euro.

The Nikkei 225 Stock Average slid 6.73 to 8,851.0 and the broader Topix index fell 1.31 to 757.29.

The yen traded at 79.21 against one dollar and traded near 97.10 yen against the euro.

In trading, turnover on the main section of the Tokyo Stock Exchange declined to 1.36 billion shares, 30% lower than its average for the year and 17% below its monthly average. Of the shares traded, 1,056 declined and 466 closed higher.

Investors looked ahead to the decision from the Bank of Japan on Friday and investors are hoping for additional measures to expand its program to buy exchange-traded-funds of stock indexes.

Last week the Bank of Japan reported improving activities in all nine regions of the economy for the first time in three years. The central bank also said post-tsunami domestic demand was strong.

Stock Movers

Nikon rebounded 0.6% a day after Intel agreed to invest in its competitor as much as $4.1 billion and take 15% stake in the Netherlands based ASML Holding NV.

Sharp decreased 1.6% to 356 yen, a 33-year low after speculators estimated lower demand for its LCD screens in the fiscal first quarter.

Toyota Motor slipped 15 yen to 3,080 yen and Honda Motor Co. rose 3 yen to 2,580 yen and Nissan Motor Co Ltd added 4 yen to 723 yen.

Sony Corp dropped 23 yen to close at 1,023 yen and Panasonic Corp closed down 28 yen to 582 yen. Toshiba unchanged to 290 yen. Olympus Corp slumped 26 yen to 1,257 yen and Nikon gained 14 yen to 2,350 yen.

Fanuc Ltd declined 40 yen to 12,510 yen and Canon Inc slipped 20 yen to 3,025 yen.

Machinery makers traded lower after China reported smaller than expected increase in imports. China is also set to release GDP data later in the week.

Komatsu Ltd decreased 17 yen to 1,801 yen and Hitachi Construction Machinery Co slid 13 yen to 1,358 yen.

Yamada Denki fell 0.8% to 3,570 yen. Nitori Holdings Co closed down 0.1% to 7,470 yen, apparel retailer Shimamura gained 1% to 9,360 yen and Sagami Co slipped 3.4% to 115 yen.

Marushohotta Co closed down 2 yen to 46 yen and Edion Corp decreased 2.3% to 373 yen.

Fast Retailing Co. gained 50 yen to 15,430 yen and J. Front Retailing Co. Ltd increased 7 yen to 424 yen.

Kajima Corp fell 2 yen to 230 yen and Taisei Corp closed unchanged at 222 yen. Sekisui House Ltd rose 0.7% to 767 yen and Daito Trust Construction Co Ltd slid 1% to 7,640 yen.

Tokyo Tatemono Co., Ltd rose 2 yen to 280 yen and Mitsui Fudosan advanced 21 yen to 1,494 yen and Sumitomo Realty & Development Co. gained 28 yen to 1,886 yen.

Kansai Electric Power Company, Inc rose 2 yen to 916 yen and Tokyo Electric Power fell 2 yen to 150 yen.

Inpex Corp decreased 2.2% to 437,000 yen and Japan Petroleum Exploration Co. plummeted 112 yen to 2,958 yen.

Mitsui O.S.K. Lines, Ltd slid 3 yen to 264 yen; Kawasaki Kisen Kaisha, Ltd fell 3 yen to 126 yen and Nippon Yusen K.K. decreased 4 yen to 199 yen.

Mitsubishi UFJ Financial Group rose 3 yen to 386 yen and Sumitomo Mitsui Financial Group advanced 23 yen to 2,600 yen. Nomura Holdings, Inc added 4 yen to 276 yen.

Credit Saison Co Ltd advanced 25 yen to 1,722 yen.

Nippon Steel fell 2 yen to 167 yen and JFE Holdings Inc slipped 8 yen to 1,179 yen.