Volatile Nikkei in Thin Trading, Yen Gains

Nigel Thomas
23 Aug, 2012
New York City

Stocks in Tokyo recovered from the early loss in indexes of as much as 0.8% on the growing evidence of global economic slowdown after Chinese manufacturing contracted and the U.S. Fed weighed more stimulus. The yen strengthened.

[R]6:00 PM Tokyo – Stocks in Tokyo recovered from the early loss in indexes of as much as 0.8% on the growing evidence of global economic slowdown after Chinese manufacturing contracted and the U.S. Fed weighed more stimulus. The yen strengthened.[/R]

The benchmark indexes in Tokyo dropped as much as 0.8% in the early hours of trading after the latest manufacturing survey in China estimated sharpest contraction in nine months and the rising yen.

Stocks recovered in the late afternoon trading and the Nikkei index closed up 0.5% in thin volume.

The Nikkei 225 Stock Average climbed 46.38 to 9,178.12, the highest since July 4. The broader Topix Index increased 1.86 to 764.59.

The low trading volume also enhanced market volatility. Total volume of all shares included in the Topix index increased to 1.39 billion shares from 1.23 billion shares but lower than the last week average of 1.52 billion shares.

The dollar declined as much as 1.2% after the release of Fed minutes of meeting and traded at 78.24 yen before recovering to close at 78.54. The talks of additional stimulus dragged the dollar down.

Against the euro, the yen gained to 98.07 from 98.77 in yesterday’s close.

The yen strengthened after the latest U.S. Federal Reserve meeting minutes suggested that few members are looking to provide stimulus sooner than expected unless economic growth revives in the next few weeks and unemployment falls below 8%. The jobless rate has hovered over 8% since February 2009.

Stocks in Review

Convenience store chain operators FamilyMart Co Ltd declined 5 yen to 3,830 yen, Lawson slipped 20 yen to 6,080 yen and Seven & I Holdings Co slid 15 yen to 2,581 yen.

Honda Motor Co. slumped 7 yen to 2,646 yen and Nissan Motor Co Ltd decreased 5 yen to 777 yen.

Nippon Steel closed up 2 yen to 174 yen and JFE Holdings Inc gained 8 yen to 1,111 yen. Tokyo Steel Manufacturing slid 1.3% to 290 yen.

Canon Inc jumped 37 yen to 2,738 yen and Seiko Epson Corp slipped 6 yen to 560 yen and Ricoh Co Ltd down 1 yen to 641 yen. Sony Corp decreased 3 yen at 929.

Panasonic Corp closed unchanged at 570 yen and Toshiba added 1 yen to 277 yen and Nikon advanced 43 yen to 2,230 yen. Sharp increased 2 yen to 182 yen.

Nintendo Co. Ltd jumped 110 yen at 8,950 yen, Fujitsu slid 0.3% to 332 yen and Pioneer Corp. dropped 10 yen or 4.5% to 212 yen.

Fanuc Ltd climbed 50 yen to 13,280 yen and Komatsu Ltd slipped 2 yen to 1,713 yen.

Sharp Corp gained 2 yen to 182 yen after the local media said that the two largest lendfer of struggling TV maker, Mitsubishi UFJ Financial Group and Mizuho Corporation Bank may extend 200 billion yen or $2.5 billion in loans and may offer new loans.

Pioneer declined 5% to 212 yen after Sharp said it may sell its stake in the company of as much as 9% of Taiwan based Foxconn Technology fails to follow through its interest in investing in the company.

Hitachi Construction Machinery Co increased 5 yen to 1,436 yen after two more brokerage firms issued cautious outlook for construction equipment demand in China.

Yamada Denki plummeted 25 yen to 4,220 yen. Nitori Holdings Co climbed 120 cents to 7,770 yen, apparel retailer Shimamura advanced 70 yen to 9,340 yen and Sagami Co slumped 4 yen to 130 yen.

Fast Retailing Co. jumped 160 yen to 18,350 yen and J. Front Retailing Co. Ltd increased 2 yen to 409 yen.

Kajima Corp added 1 yen to 230 yen and Taisei Corp closed unchanged at 224 yen. Sekisui House Ltd down 1 yen to 747 yen and Daito Trust Construction Co Ltd plummeted 80 yen to 7,690 yen.

Tokyo Tatemono Co., Ltd closed unchanged at 283 yen and Mitsui Fudosan gained 8 yen to 1,549 yen and Sumitomo Realty & Development Co. closed unchanged at 1,992 yen.

Kansai Electric Power Company, Inc increased 8 yen to 659 yen.

Inpex Corp slid 0.6% to 474,500 yen and Japan Petroleum Exploration Co. slumped 20 yen to 3,145 yen.

Freight shipping companies declined for the second day after the largest mining company BHP confirmed a sharp decline in sales and earnings in its iron ore and base metals division.

Mitsui O.S.K. Lines, Ltd slipped 4 yen to 213 yen and Kawasaki Kisen Kaisha, Ltd lowered 2 yen to 108 yen and Nippon Yusen K.K. slid 3 yen to 171 yen.

Mitsubishi UFJ Financial Group up 2 yen to 375 yen and Sumitomo Mitsui Financial Group increased 12 yen to 2,537 yen. Nomura Holdings, Inc added 1 yen to 287 yen.

Tokio Marine jumped 38 yen to 1,986 yen and Mito Securities slid 1.3% to 149 yen.

Credit Saison Co Ltd climbed 21 yen to 1,850 yen.