China Demonstrations Weaken Tokyo Stock Prices

Nigel Thomas
18 Sep, 2012
New York City

Markets in Tokyo closed lower after China linked companies plunged the most. Fast Retailing, Toyota, Honda, Nissan and Sony were among the large companies that were forced to shutter factories and stores in China after anti-Japanese demonstrations spread to dozens of cities.

[R]7:00 PM Tokyo – Markets in Tokyo closed lower after China linked companies plunged the most. Fast Retailing, Toyota, Honda, Nissan and Sony were among the large companies that were forced to shutter factories and stores in China after anti-Japanese demonstrations spread to dozens of cities.[/R]

Anti-Japanese demonstration in China gained momentum on the 81st anniversary of a Japanese invasion and simmering anger over the disputed islands in the East China Sea.

Several Japanese retail stores were damaged and auto retail shops suffered damages according to television footage shown by Phoenix Satellite Television, CNN and Russian government controlled RT.

Chief Cabinet Secretary Osamu Fujimura told reporters in Tokyo that the Japanese government is urging Beijing to protect Japanese businesses and prevent stores and factories from looting and damages from the protests.

The largest Japanese retailer Uniqlo said it has suffered at least $32 million of damages and was forced to shutter several of its stores across China.

As violent protest increase in dozens of cities in China, authorities lagged in clamping down and more Japanese businesses suffer losses.

Despite the current diplomatic crisis and gathering protests in China, the trade between two nations has soared to $344 billion in 2011 after a decade of breakneck growth.

The Nikkei 225 Stock Average slipped 35.62 to 9,123.77 and the broader Topix Index edged up 1.48 to 758.36.

Stocks in Review

Mitsui O.S.K. Lines, Ltd closed unchanged at 203 yen and Kawasaki Kisen Kaisha, Ltd slid 2 yen to 102 yen and Nippon Yusen K.K. gained 3 yen to 150 yen.

Itochu Corp added 0.2% to 832 yen after it agreed to acquire Asian fresh produce business and global packaged food business for $1.7 billion in cash.

Toyota Motor slipped 0.6% to 3,195 yen, Honda Motor Co. declined 67 yen to 2,604 yen and Nissan Motor Co Ltd plunged 37 yen or 5% to 701 yen.

Toyota with nearly 10% of global sales in China said that its dealership in Qingdao was burned down but none of the factories were damaged.

Honda Motor said five assembly plants in China were closed today and tomorrow to curb production as it grapples with fewer unit sales in the recent weeks.

Nissan also suspended production in China for two days. China accounts for 20% of global sales of Honda and 25% for Nissan.

Nippon Steel slid 1 yen to 175 yen and JFE Holdings Inc slumped 14 yen to 1,156 yen. Tokyo Steel Manufacturing gained 5 yen to 293 yen.

The Apple Inc suppliers were in focus after the popular mobile phone maker said it received 2 million orders for its latest iPhone 5 and exceeded the supply and will delay shipment of some orders by a month to October.

TDK added 0.2% to 3,085 yen, Murata Manufacturing Co increased 2.6% to 4,320 yen and Meiko Electronics Co Ltd gained 0.9%. Foster Electric slipped 1.3% and Sumida Corp closed unchanged at 393 yen.

Canon Inc jumped 29 yen to 2,812 yen and Seiko Epson Corp climbed 18 yen to 546 yen and Ricoh Co Ltd gained 10 yen to 683 yen. Sony Corp climbed 44 yen or 4.5% to 1,027.

Sony said it kept its two of the seven factories in China closed to protect its factories.

Panasonic Corp slid 4 yen to 560 yen after Moody’s rating service lowered its debt rating to Baa1 from A2 and highlighted weakening earnings and large debt load.

Nikon slumped 31 yen to 2,142 yen and Toshiba Corp, increased 6 yen to 266 yen.

Olympus slipped 0.9% to 1,540 yen, Nintendo Co. Ltd surged 490 yen or 5.1% to 10,020 yen, Fujitsu slid 1% to 301 yen and Pioneer Corp. lowered 1 yen to 249 yen. Sharp Corp decreased 5 yen to 203 yen.

Fanuc Corp. climbed 230 yen to 13,890 yen and Komatsu Ltd dropped 31 yen to 1,650 yen. Hitachi Construction Machinery Co declined 31 yen to 1,344 yen.

FamilyMart Co Ltd, the convenience chain operator slumped 50 yen to 3,665 yen and Lawson decreased 20 yen to 5,600 yen. Ito En Ltd slipped 8 yen to 1,559 yen.

Seven & I Holdings Co decreased 32 yen to 2,291 yen.

Yamada Denki slumped 60 yen to 3,435 yen. Nitori Holdings Co plummeted 120 cents to 7,890 yen, apparel retailer Shimamura declined 50 yen to 9,000 yen and Sagami Co slid 2 yen to 119 yen.

Fast Retailing Co. plunged 7% to 17,480 yen after Nikkei newspaper said its Uniqlo suffered 2.5 billion yen or $32 million damages in China. The 7% decline was the sharpest of all actively traded stocks in Tokyo.

J. Front Retailing Co. Ltd decreased 4 yen to 427 yen.

Kajima Corp closed unchanged at 216 yen and Taisei Corp added 1 yen to 213 yen. Sekisui House Ltd slipped 5 yen to 782 yen and Daito Trust Construction Co Ltd dropped 40 yen to 7,760 yen.

Credit Saison Co Ltd decreased 11 yen to 1,855 yen.

Tokyo Tatemono Co., Ltd gained 5 yen to 284 yen and Mitsui Fudosan slid 6 yen to 1,597 yen and Sumitomo Realty & Development Co. climbed 23 yen to 2,108 yen.

Inpex Corp jumped 2.9% to 499,000 yen and Japan Petroleum Exploration Co. advanced 50 yen to 3,285 yen. Tokyo Electric Power Company, Inc. closed unchanged at 133 yen.

Mitsubishi UFJ Financial Group increased 6 yen to 389 yen and Sumitomo Mitsui Financial Group slid 2 yen to 2,583 yen. Nomura Holdings, Inc added 2 yen to 301 yen.

Tokio Marine slumped 13 yen to 2,093 yen and Mito Securities gained 3 yen to 153 yen.