Japanese Auto Sales Rise 12.4%, Capital Spending Up 6.6%

Nigel Thomas
03 Sep, 2012
New York City

Stocks in Tokyo fell for the third day in a row and closed at a 4-week low. The disappointing Chinese manufacturing read also added to market jitters and the non-mini auto sales in August growth declined. Capital spending increased 6.6% in the quarter to June.

[R]6:00 PM Tokyo – Stocks in Tokyo fell for the third day in a row and closed at a 4-week low. The disappointing Chinese manufacturing read also added to market jitters and the non-mini auto sales in August growth declined. Capital spending increased 6.6% in the quarter to June.[/R]

Stocks in Tokyo closed lower after a string of weak economic data from China and Australia highlighting slowing worldwide economic growth.

The latest official read on Chinese manufacturing index dropped to a nine-month low. The PMI index decreased to 49.2 in August from 50.1 in July.

The Nikkei 225 Stock Average dropped 56.02 or 0.6% to 8,783.89 and the broader Topix Index slid 3.01 to 728.63.

Automobiles sales that included mini-vehicles in August increased 12.4% to 370,777 units from a year ago. Total sales surged 46.1% to 3.83 million units in the period between January and August.

The auto sales excluding mini-vehicles of 660 cc rose 7.3% to 232,372 units and for the year to August increased 46.3% to 2.4 million.

Capital spending excluding software in the quarter to June increased 6.6%, according to the Finance Ministry.

Stocks in Review

Auto makers were in focus after monthly growth rate declined as the subsidy for green cars are nearing to expire.

Honda Motor Co. decreased 19 yen to 2,453 yen and Nissan Motor Co Ltd slid 1 yen to 729 yen.

Nippon Steel added 1 yen to 152 yen and JFE Holdings Inc slipped 4 yen to 984 yen. Tokyo Steel Manufacturing closed unchanged at 255 yen.

Canon Inc slumped 45 yen to 2,550 yen and Seiko Epson Corp decreased 15 yen to 487 yen and Ricoh Co Ltd lowered 6 yen to 610 yen. Sony Corp slipped 5 yen at 876.

Panasonic Corp dropped 14 yen to 518 yen and Toshiba down 1 yen to 249 yen and Nikon declined 36 yen to 2,116 yen.

Sharp Corp. plunged 6.1% or 12 yen to 186 yen on the hopes that the Taiwan based Hon Hai Precision may invest in the company at a lower price than earlier an expected. After the close, the rating agency S&P lowered Sharp’s debt rating to junk level.

Olympus slipped 1.2% to 1,527 yen, Nintendo Co. Ltd dropped 50 yen at 8,670 yen, Fujitsu decreased 1.6% to 313 yen and Pioneer Corp. gained 6 yen to 213 yen.

Mining equipment and machinery makers extended losses for the tenth in the last eleven days after mining companies cut investment in quarter to June in Australia.

Fanuc Ltd declined 140 yen to 12,650 yen and Komatsu Ltd slumped 13 yen to 1,527 yen. Hitachi Construction Machinery Co slipped 8 yen to 1,288 yen.

FamilyMart Co Ltd, the convenience chain operator advanced 70 yen to 3,845 yen, Lawson closed unchanged at 6,000 yen and Seven & I Holdings Co climbed 43 yen to 2,418 yen. Ito En Ltd decreased 10 yen to 1,547 yen.

Yamada Denki slumped 40 yen to 3,730 yen. Nitori Holdings Co gained 50 cents to 7,890 yen, apparel retailer Shimamura dropped 190 yen to 9,100 yen and Sagami Co slid 3 yen to 122 yen.

Fast Retailing Co. slipped 130 yen to 18,140 yen and J. Front Retailing Co. Ltd increased 7 yen to 398 yen.

Kajima Corp closed unchanged at 217 yen and Taisei Corp closed unchanged at 213 yen. Sekisui House Ltd gained 5 yen to 738 yen and Daito Trust Construction Co Ltd advanced 150 yen to 7,790 yen.

Tokyo Tatemono Co., Ltd up 2 yen to 261 yen and Mitsui Fudosan increased 9 yen to 1,462 yen and Sumitomo Realty & Development Co. gained 13 yen to 1,922 yen.

Inpex Corp slipped 2.4% to 434,000 yen and Japan Petroleum Exploration Co. slumped 56 yen to 2,984 yen.

Mitsui O.S.K. Lines, Ltd slid 4 yen to 192 yen and Kawasaki Kisen Kaisha, Ltd closed down 5 yen to 100 yen and Nippon Yusen K.K. down 1 yen to 157 yen.

Mitsubishi UFJ Financial Group closed unchanged at 356 yen and Sumitomo Mitsui Financial Group increased 9 yen to 2,433 yen. Nomura Holdings, Inc gained 6 yen to 264 yen.

Tokio Marine advanced 19 yen to 1,893 yen and Mito Securities increased 10 yen to 144 yen.

Credit Saison Co Ltd gained 12 yen to 1,843 yen.