Nikkei Halts 2-Week Rally on Export Worries

Nigel Thomas
24 Aug, 2012
New York City

Stocks in Tokyo traded lower and halted a two-week rally in market indexes as more signals emerge of the global slowdown. Investors took profit in thin trading as the prospects of immediate stimulus in Europe and the U.S. looked remote.

[R]6:00 PM Tokyo – Stocks in Tokyo traded lower and halted a two-week rally in market indexes as more signals emerge of the global slowdown. Investors took profit in thin trading as the prospects of immediate stimulus in Europe and the U.S.[/R]

Stocks in Tokyo eased on Friday after the benchmark index surged to a 3-month high and at the end of the week the index fell 1%.

The latest data from the U.S. added to the growing unease about the global economic growth and iron ore prices fell to the lows last seen in 2009 after the latest Chinese economic data.

The Nikkei 225 Stock Average declined 107.36 or 1.2% to 9,070.76, the highest since July 4. The broader Topix Index slid 7.36 to 757.23.

For the week, the Nikkei declined 1% and trading volume in the index stocks was 30% below the average of last 30 days.

Stocks in Review

FamilyMart Co Ltd, the convenience chain operator closed unchanged at 3,830 yen, Lawson decreased 10 yen to 6,070 yen and Seven & I Holdings Co slipped 18 yen to 2,563 yen.

Honda Motor Co. dropped 30 yen to 2,616 yen and Nissan Motor Co Ltd slipped 12 yen to 765 yen.

Nippon Steel slid 2 yen to 172 yen and JFE Holdings Inc declined 39 yen to 1,072 yen. Tokyo Steel Manufacturing edged down 0.3% to 289 yen.

Canon Inc slipped 5 yen to 2,733 yen and Seiko Epson Corp decreased 12 yen to 546 yen and Ricoh Co Ltd dropped 16 yen to 625 yen. Sony Corp slid 11 yen at 918.

Panasonic Corp closed down 11 yen to 559 yen and Toshiba lowered 7 yen to 270 yen and Nikon gained 3 yen to 2,233 yen. Sharp jumped 10 yen or 5.5% to 192 yen.

Nintendo Co. Ltd declined 60 yen at 8,890 yen, Fujitsu slid 0.9% to 329 yen and Pioneer Corp. decreased 6 yen to 206 yen.

Fanuc Ltd plummeted 280 yen to 13,000 yen and Komatsu Ltd slumped 26 yen to 1,687 yen.

Sharp Corp climbed 10 yen or 5.5% to 192 yen on the local media reports that the company’s Sakai LCD TV panel plant is operating at 80% capacity rate after the company won orders from Samsung Electronics, Sony Corp and U.S. based Vizio.

Pioneer extended the decline by 2.8% to 206 yen after Sharp said a day ago 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 slumped 28 yen to 1,408 yen.

Yamada Denki plummeted 135 yen to 4,085 yen. Nitori Holdings Co increased 30 cents to 7,800 yen, apparel retailer Shimamura plummeted 110 yen to 9,230 yen and Sagami Co gained 6 yen to 136 yen.

Fast Retailing Co. declined 260 yen to 18,090 yen and J. Front Retailing Co. Ltd slipped 9 yen to 400 yen.

Kajima Corp slid 3 yen to 227 yen and Taisei Corp down 2 yen to 222 yen. Sekisui House Ltd lowered 2 yen to 745 yen and Daito Trust Construction Co Ltd gained 10 yen to 7,700 yen.

Tokyo Tatemono Co., Ltd decreased 4 yen to 279 yen and Mitsui Fudosan dropped 27 yen to 1,522 yen and Sumitomo Realty & Development Co. slipped 18 yen to 1,974 yen.

Kansai Electric Power Company, Inc soared 38 yen or 5.8% to 697 yen.

Inpex Corp down 1.4% to 468,000 yen and Japan Petroleum Exploration Co. declined 45 yen to 3,100 yen.

Freight shipping companies declined for the third week after the iron ore price with 62% content in international trading declined to $99.60 a dry ton, below $100 level for the first time since March 2009.

Mitsui O.S.K. Lines, Ltd slumped 6 yen to 207 yen and Kawasaki Kisen Kaisha, Ltd slid 1 yen to 107 yen and Nippon Yusen K.K. lowered 2 yen to 169 yen.

Mitsubishi UFJ Financial Group slipped 6 yen to 369 yen and Sumitomo Mitsui Financial Group declined 30 yen to 2,507 yen. Nomura Holdings, Inc slumped 8 yen to 279 yen.

Tokio Marine plummeted 43 yen to 1,943 yen and Mito Securities slipped 2% to 146 yen.

Credit Saison Co Ltd dropped 14 yen to 1,836 yen.