Nikkei Turns Down from 3-Month High, Defensive Stocks Rally

Nigel Thomas
21 Aug, 2012
New York City

Stocks in Tokyo edged lower in weak trading as investors remained focused on defensive stocks linked to domestic economy. In thin trading, the Nikkei declined and investors awaited concrete announcements from the central banks in Europe.

[R]6:00 PM Tokyo – Stocks in Tokyo edged lower in weak trading as investors remained focused on defensive stocks linked to domestic economy. In thin trading, the Nikkei declined and investors awaited concrete announcements from the central banks in Europe.[/R]

Stocks in Japan closed lower and market indexes gyrated with every pronouncement officials in the euro zone.

The comments from the German central bank cast fresh doubts about the possibility of the new large bond buying program from the European Central Bank.

The Nikkei 225 Stock Average slipped 14.24 to 9,156.92, the highest since July 4. The broader Topix Index edged up 0.60 to 765.26.

The yen gained a fraction to 79.40 yen from 79.66 yen at close on Monday.

Stocks in Review

Stocks of defensive sectors were in favor among investors. Convenience stores operators and telecom carriers were among the most active stocks in trading today.

Convenience store chain operators FamilyMart Co Ltd increased 1.5%, Lawson added 1.3% and Seven & I Holdings Co gained 1%.

Honda Motor Co. increased 8 yen to 2,655 yen and Nissan Motor Co Ltd added 2 yen to 791 yen.

Nippon Steel closed down 2 yen to 175 yen and JFE Holdings Inc slipped 7 yen to 1,135 yen. Tokyo Steel Manufacturing fell 2.6% to 298 yen.

Canon Inc plummeted 49 yen to 2,730 yen, Seiko Epson Corp slid 8 yen to 549 yen and Ricoh Co Ltd down 5 yen to 652 yen. Sony Corp lowered 4 yen at 942.

Panasonic Corp decreased 6 yen to 585 yen, Toshiba slid 1 yen to 280 yen and Nikon slipped 1 yen to 2,196 yen. Sharp gained 5 yen to 179 yen.

Sharp Corp gained 3% and was the most active stock on the main board of the Tokyo Stock Exchange after the Yomiuri newspaper said that the struggling TV maker plans to cut 8,000 jobs or 15% of its worldwide staff. The company plans to sell two TV manufacturing facilities in China and Mexico with 3,000 staff.

Nintendo Co. Ltd climbed 190 yen at 8,910 yen, Fujitsu increased 3.7% to 335 yen and Pioneer Corp. closed unchanged at 227 yen.

Fanuc Ltd dropped 200 yen to 13,170 yen and Komatsu Ltd slumped 50 yen to 1,717 yen.

Hitachi Construction Machinery Co plummeted 44 yen to 1,439 yen after two more brokerage firms issued cautious outlook for construction equipment demand in China.

Yamada Denki jumped 35 yen to 4,340 yen. Nitori Holdings Co climbed 70 cents to 7,490 yen, apparel retailer Shimamura declined 100 yen to 9,250 yen and Sagami Co plunged 10 yen or 7% to 132 yen.

Fast Retailing Co. decreased 20 yen to 17,920 yen and J. Front Retailing Co. Ltd added 1 yen to 400 yen.

Kajima Corp added 3 yen to 231 yen and Taisei Corp closed unchanged at 223 yen. Sekisui House Ltd up 2 yen to 752 yen and Daito Trust Construction Co Ltd slipped 10 yen to 7,660 yen.

Tokyo Tatemono Co., Ltd closed unchanged at 286 yen and Mitsui Fudosan gained 3 yen to 1,544 yen and Sumitomo Realty & Development Co. increased 3 yen to 2,014 yen.

Kansai Electric Power Company, Inc slid 20 yen to 650 yen.

Inpex Corp added 0.4% to 478,500 yen and Japan Petroleum Exploration Co. closed unchanged at 3,200 yen.

Freight shipping companies declined on the worsening outlook for steelmakers in China and dampening the demand for additional iron ore from Australia and other nations.

Mitsui O.S.K. Lines, Ltd slipped 6 yen to 220 yen, Kawasaki Kisen Kaisha, Ltd closed down 2 yen to 111 yen and Nippon Yusen K.K. slid 2 yen to 175 yen.

Mitsubishi UFJ Financial Group gained 4 yen to 372 yen and Sumitomo Mitsui Financial Group increased 12 yen to 2,512 yen. Nomura Holdings, Inc grew 6 yen to 290 yen.

Tokio Marine added 2 yen to 1,973 yen and Mito Securities up 0.6% to 155 yen.

Credit Saison Co Ltd slid 3 yen to 1,859 yen.