Nikkei Drops to 3-Week Low, Machinery Orders Fall 4.3%

Nigel Thomas
08 Nov, 2012
New York City

Stocks in Japan continue to drift lower and the Nikkei index dropped to a 3-week low. Machinery orders fell 4.3% in September on falling exports. Oki Electric and Citizen Holdings fell on lowered expectations but Isuzu Motor boosted annual net income outlook.

[R]7:00 PM Tokyo – Stocks in Japan continue to drift lower and the Nikkei index dropped to a 3-week low. Machinery orders fell 4.3% in September on falling exports. Oki Electric and Citizen Holdings fell on lowered expectations but Isuzu Motor boosted annual net income outlook.[/R]

The Nikkei index in Tokyo fell to a 3-week low after machinery orders declined in September and another batch of weak earnings from companies exporting to China and Europe.

The Nikkei 225 Stock Average declined 135.74 or 1.5% to 8,837.15 and the broader Topix Index slumped 10.36 or 1.4% to 735.35.

The yen gained to 79.77 to a dollar and rose to 101.75 yen from 103.01 at the close yesterday.

Machinery orders decreased 4.3% in September from the previous month on slowing global demand and current account narrowed to the smallest in the month since 1985.

Stocks in Review

Toyota Motor Corp. declined 85 yen to 3,155 yen and Honda Motor Co. plummeted 86 yen to 2,395 yen and Nissan Motor Co Ltd slipped 8 yen to 697 yen. Mazda Motor Corp slid 2 yen to 105 yen.

Isuzu Motors Ltd soared 4.7% to 448 yen after the company said cost cutting will help the auto maker increase its net income forecast 12% to 91 billion yen.

Nippon Steel slumped 6 yen to 171 yen and JFE Holdings Inc dropped 32 yen to 1,117 yen. Tokyo Steel Manufacturing down 4 yen to 260 yen.

Fujikura Ltd slipped 2.6% to 221 yen and TDK decreased 4 yen to 2,813 yen.

Murata Manufacturing Co closed unchanged at 4,050 yen and Meiko Electronics Co Ltd lowered 1% or 510 yen.

Shimano Inc closed unchanged at 5,080 yen.

Oki Electric Industry dropped 9% to 77 yen after the communication equipment maker lowered its net income estimate 41% to 6.5 billion yen in the current year ending in March. The company had warned earlier of the declining sales in Spain and accounting irregularities in the local subsidiary.

Ricoh Co Ltd slumped 9 yen to 656 yen, Sony Corp declined 27 yen to 887 and Seiko Epson Corp up 1 yen to 451 yen. Canon Inc plummeted 65 yen to 2,505 yen and Nikon climbed 16 yen to 1,902 yen.

Citizen Holding Co dropped 7.9% to 361 yen after the watchmaker lowered its profit estimate 29% to 8.5 billion yen on the falling sales in China and Europe.

Olympus Corp. dropped 2.4% to 1,283 yen and Nintendo Co. Ltd slumped 100 yen to 10,040 yen, Fujitsu decreased 6 yen to 280 yen and Pioneer Corp. lowered 7 yen to 166 yen. Sharp Corp slid 1 yen to 152 yen. Panasonic Corp slipped 1 yen at 396 yen.

Machinery makers declined after the September month orders declined on the falling exports orders.

Fanuc Corp. declined 300 yen to 12,840 yen and Komatsu Ltd decreased 38 yen to 1,720 yen. Hitachi Construction Machinery Co declined 35 yen to 1,365 yen.

Sumitomo Heavy added 0.3% to 303 yen.

FamilyMart Co Ltd, the convenience chain operator slumped 20 yen to 3,660 yen and Lawson climbed 30 yen to 5,710 yen. Ito En Ltd dropped 32 yen to 1,452 yen.

Seven & I Holdings Co declined 58 yen to 2,341 yen.

Yamada Denki advanced 25 yen to 3,170 yen. Nitori Holdings Co jumped 90 yen to 6,190 yen, apparel retailer Shimamura slumped 60 yen to 8,060 yen and Sagami Co closed unchanged at 119 yen.

Fast Retailing Co. climbed 240 yen to 17,140 yen and J. Front Retailing Co. Ltd slipped 9 yen to 390 yen.

Inpex Corp declined 2.8% to 444,000 yen, Japan Petroleum Exploration Co. plummeted 80 yen to 2,811 yen. Tokyo Electric Power Co, Inc. lowered 2 yen to 125 yen.

Mitsubishi UFJ Financial Group down 3 yen to 356 yen and Sumitomo Mitsui Financial Group decreased 16 yen to 2,418 yen. Nomura Holdings, Inc slid 3 yen to 291 yen.

Japan Airlines Co Ltd declined 55 yen to 3,665 yen and All Nippon Airways lowered 1 yen to 165 yen.

Japan Tobacco slipped 12 yen to 2,238 yen.

Mitsui O.S.K. Lines, Ltd down 4 yen to 187 yen and Kawasaki Kisen Kaisha, Ltd slid 2 yen to 98 yen and Nippon Yusen K.K. slumped 3 yen to 149 yen.