Nikkei, Yen Weaken; Sharp, Steel Makers Drop

Nigel Thomas
15 Aug, 2012
New York City

Stocks in Tokyo eased and steel makers led the decliners on the worries that the demand from China was waning. Gree Inc, the social gaming site operator dropped 7% after estimating lower than expected annual outlook.

[R]6:00 PM Tokyo – Stocks in Tokyo eased and steel makers led the decliners on the worries that the demand from China was waning. Gree Inc, the social gaming site operator dropped 7% after estimating lower than expected annual outlook.[/R]

Stocks in Tokyo edged lower in slow trading and most investors were away on summer holiday. Social networking sites, mega banks and electronics exporters were among the most active in trading.

The Nikkei 225 Stock Average edged down 4.84 to 9,925.04 and the broader Topix Index fell 2.21 to 747.32.

The yen weakened to 78.45 yen from 78.36 yen at close yesterday and traded lower against the euro to 97.26 from 96.96.

The yen weakened after U.S. retail sales in July increased at the fastest pace in four months and in the euro zone six nations are facing recession at the end of second quarter and France reported zero growth for the third quarter in a row.

Stocks in Review

Honda Motor Co. increased 11 yen to 2,526 yen and Nissan Motor Co Ltd added 1 yen to 769 yen after U.S. monthly sales increased more than expected.

Steel makers were sharply lower after largest iron ore miner said demand from China is slowing and also hinted that the best years of growth in China “may be over.”

Nippon Steel slid 4 yen to 163 yen, JFE Holdings Inc declined 43 yen to 1,047 yen and Kobe Steel Ltd dropped 6% to 66 yen after BNP Paribas SA cut its target price to 75 yen from 100 yen.

Canon Inc gained 19 yen to 2,690 yen, Seiko Epson Corp fell 3 yen to 527 yen and Ricoh Co Ltd dropped 26 yen to 619 yen. Sony Corp slumped 27 yen at 891.

Panasonic Corp slipped 16 yen to 543 yen, Toshiba fell 2 yen to 259 yen and Nikon closed unchanged at 2,096 yen.

Sharp plunged 12.4% or 24 yen to 169 yen after the flat panel television maker said sales of TV units may plunge 35% after the end of the government subsidy compared to previous estimate of the decline of 19%.

Nintendo Co. Ltd advanced 100 yen at 8,460 yen, Fujitsu slid 0.6% to 309 yen and Pioneer Corp. fell 3 yen to 202 yen.

Fanuc Ltd advanced 200 yen to 12,580 yen and Komatsu Ltd increased 29 yen to 1,686 yen and Hitachi Construction Machinery Co added 5 yen to 1,418 yen.

Gree Inc plunged 7% after the social gaming site operator offered lower than expected operating profit and earnings outlook for the year lower than analysts’ expectations. Gree had surged 14% in the previous three sessions after the rival DeNA reported better than expected earnings.

Yamada Denki slumped 1.6% or 70 yen to 4,340 yen. Nitori Holdings Co declined 60 cents to 7,530 yen, apparel retailer Shimamura added 0.2% to 9,340 yen and Sagami Co surged 25% or 26 yen to 130 yen.

Fast Retailing Co. increased 40 yen to 17,400 yen and J. Front Retailing Co. Ltd slipped 5 yen to 383 yen.

Kajima Corp fell 1 yen to 222 yen and Taisei Corp slid 1 cent to 217 yen. Sekisui House Ltd slipped 4 yen to 734 yen and Daito Trust Construction Co Ltd dropped 80 yen to 7,660 yen.

Tokyo Tatemono Co., Ltd down 10 yen to 274 yen and Mitsui Fudosan decreased 18 yen to 1,490 yen and Sumitomo Realty & Development Co. rose 4 yen to 1,911 yen.

Kansai Electric Power Company, Inc slumped 18 yen to 668 yen.

Inpex Corp edged up 0.2% to 472,500 yen and Japan Petroleum Exploration Co. gained 5 yen to 3,085 yen.

Mitsui O.S.K. Lines, Ltd slid 3 yen to 215 yen, Kawasaki Kisen Kaisha, Ltd fell 1 yen to 109 yen and Nippon Yusen K.K. lowered 1 yen to 170 yen.

Mitsubishi UFJ Financial Group slipped 2 yen to 359 yen and Sumitomo Mitsui Financial Group declined 54 yen to 2,412 yen. Nomura Holdings, Inc fell 4 yen to 269 yen.

Tokio Marine slumped 14 yen to 1,874 yen and Mito Securities dropped 3.4% to 140 yen.

Credit Saison Co Ltd decreased 14 yen to 1,846 yen.