Nikkei Down 1.6%, Japanese Trade Gap Widens

Nigel Thomas
20 Sep, 2012
New York City

The benchmark index in Tokyo dropped the most in three months after the latest economic data from China indicated a slowdown in manufacturing. The fall in exports and imports widened the August month trade deficit in Japan.

[R]7:00 PM Tokyo – The benchmark index in Tokyo dropped the most in three months after the latest economic data from China indicated a slowdown in manufacturing. The fall in exports and imports widened the August month trade deficit in Japan.[/R]

The benchmark Nikkei index in Tokyo dropped the most in three months after Japan reported falling exports and imports and the yen edged higher.

Separately, a private survey in China indicated manufacturing activities stabilizing but still shrinking in September. The activities declined for eleventh month in a row, the longest decline in the eight year history of the index tracked by the HSBC bank.

The Nikkei 225 Stock Average declined 149.77 or 1.6% to 9,082.44 and the broader Topix Index slumped 10.99 or 1.4% to 753.81.

Japan Airlines Co Ltd extended its gains for the second day in a row after it priced its initial public offering on Wednesday.

Japan’s Trade Deficit Widens

Japan’s trade deficit expanded in August from the previous month as both exports and imports fell.

Exports for the month declined 5.8% from a year ago, the third monthly decline in a row, and imports fell 5.4%.

Trade deficit increased to 754.1 billion yen from 517.4 billion yen in July but fell from 777.5 billion yen from a year-ago month.

Exports to China decreased 9.9% from a year ago month but increased 10.3% to the U.S. and plunged 22.9% to the European Union.

Stocks in Review

Nippon Telegraph and Telephone Corp, the largest fixed line operator surged 7.1% to 3,855 yen after the company said it plans to spend as much as 150 billion yen or $191 million repurchasing up to 3.4% of its outstanding stocks.

Japan Airlines Co Ltd increased 0.4% and extended gains of 1% after it priced its initial public offering at 3,790 yen.

Mitsui O.S.K. Lines, Ltd slipped 8 yen to 209 yen and Kawasaki Kisen Kaisha, Ltd slid 3 yen to 111 yen and Nippon Yusen K.K. decreased 5 yen to 154 yen.

Toyota Motor declined 45 yen to 3,210 yen, Honda Motor Co. dropped 51 yen to 2,623 yen and Nissan Motor Co Ltd slumped 25 yen to 702 yen.

Nippon Steel decreased 6 yen to 170 yen and JFE Holdings Inc slumped 16 yen to 1,164 yen. Tokyo Steel Manufacturing slipped 7 yen to 286 yen.

TDK plummeted 105 yen to 3,135 yen, Murata Manufacturing Co declined 1% to 4,295 yen and Meiko Electronics Co Ltd gained 0.8%. Foster Electric declined 3.3% and Sumida Corp slipped 1.3%.

Canon Inc declined 90 yen to 2,771 yen and Seiko Epson Corp dropped 30 yen or 5.3% to 538 yen and Ricoh Co Ltd gained 11 yen to 727 yen. Sony Corp plummeted 48 yen or 4.6% to 1,007.

Panasonic Corp decreased 18 yen to 557 yen, Nikon slumped 16 yen to 2,141 yen and Toshiba Corp, slipped 11 yen to 265 yen.

Olympus down 2.3% to 1,480 yen, Nintendo Co. Ltd plummeted 340 yen to 9,750 yen, Fujitsu slipped 3.2% to 304 yen and Pioneer Corp. lowered 7 yen to 243 yen. Sharp Corp added 2 yen to 202 yen.

Fanuc Corp. declined 260 yen to 13,730 yen and Komatsu Ltd dropped 51 yen to 1,619 yen. Hitachi Construction Machinery Co decreased 35 yen to 1,333 yen.

FamilyMart Co Ltd, the convenience chain operator climbed 70 yen to 3,715 yen and Lawson advanced 50 yen to 5,700 yen. Ito En Ltd slumped 27 yen to 1,533 yen.

Seven & I Holdings Co jumped 25 yen to 2,355 yen.

Yamada Denki slipped 15 yen to 3,560 yen. Nitori Holdings Co declined 70 cents to 7,780 yen, apparel retailer Shimamura decreased 60 yen to 8,980 yen and Sagami Co closed unchanged at 119 yen.

Fast Retailing Co. gained 10 yen to 18,060 yen and J. Front Retailing Co. Ltd decreased 7 yen to 425 yen.

Kajima Corp up 1 yen to 214 yen and Taisei Corp added 1 yen to 220 yen. Sekisui House Ltd slipped 6 yen to 773 yen and Daito Trust Construction Co Ltd advanced 80 yen to 7,830 yen.

Credit Saison Co Ltd slumped 19 yen to 1,849 yen.

Tokyo Tatemono Co., Ltd closed unchanged at 294 yen and Mitsui Fudosan slid 29 yen to 1,582 yen and Sumitomo Realty & Development Co. declined 63 yen to 2,077 yen.

Inpex Corp slumped 3.5% to 479,000 yen and Japan Petroleum Exploration Co. dropped 65 yen to 3,165 yen. Tokyo Electric Power Company, Inc. lowered 3 yen to 131 yen.

Mitsubishi UFJ Financial Group decreased 9 yen to 379 yen and Sumitomo Mitsui Financial Group declined 50 yen to 2,553 yen. Nomura Holdings, Inc slipped 10 yen to 295 yen.

Tokio Marine plummeted 59 yen to 2,055 yen and Mito Securities slid 10 yen to 151 yen.