Nikkei Halts 4-Day Rally, Shippers Rally on Freight Rate Outlook

Nigel Thomas
20 Nov, 2012
New York City

Nikkei index in Tokyo traded down 0.1% after rallying 5.7% in four session and the yen strengthened after falling to a 7-month low. Shipping companies advanced after Baltic Dry Index gained for the seventh day in a row.

[R]7:00 PM Tokyo – Nikkei index in Tokyo traded down 0.1% after rallying 5.7% in four session and the yen strengthened after falling to a 7-month low. Shipping companies advanced after Baltic Dry Index gained for the seventh day in a row.[/R]

Nikkei index traded down after a 4-day rally that lifted exporters on weaker yen.

Investors lowered expectations of opposition party win at the next election that may lead to weaker yen and faster approval for the restart of nuclear power plants.

The Nikkei 225 Stock Average slipped 10.56 to 9,142.64 and the broader Topix Index down 0.12 to 762.04.

The yen edged up to 81.17 to a dollar and rose to 103.31 yen.

Stocks in Review

Osaka Securities increased 1.9% to 326,000 yen after shareholders approved to merge with Tokyo Stock Exchange Group Inc as trading volumes decline in the last five years.

SBI Holdings Inc, the operator of alternative trading platform decreased 2% to 635 yen after the merger of two largest exchanges.

Electric utilities closed down after rallying for four days. Kansai Electric fell 4% to 714 yen after rallying 18% in three days on the hopes that the opposition party win may lead to faster approval for the restart of nuclear power plants.

Toyota Motor Corp. slumped 10 yen to 3,360 yen and Honda Motor Co. declined 27 yen to 2,575 yen and Nissan Motor Co Ltd slid 1 yen to 750 yen. Mazda Motor Corp lowered 2 yen to 119 yen.

Isuzu Motors Ltd edged up 0.2% to 467 yen

Nippon Steel closed unchanged at 184 yen and JFE Holdings Inc decreased 11 yen to 1,213 yen. Tokyo Steel Manufacturing surged 15 yen or 5.5% to 287 yen.

Fujikura Ltd slipped 1.7% to 227 yen and TDK dropped 30 yen to 3,085 yen. Murata Manufacturing Co advanced 30 yen to 4,335 yen and Meiko Electronics Co Ltd down 0.5% or 562 yen.

Shimano Inc slumped 10 yen to 5,300 yen.

Oki Electric Industry down 1.3% to 75 yen, Ricoh Co Ltd climbed 16 yen to 745 yen, Sony Corp decreased 6 yen to 816 and Seiko Epson Corp dropped 6 yen to 468 yen. Canon Inc declined 24 yen to 2,793 yen and Nikon slipped 7 yen to 2,073 yen.

Olympus Corp. lowered 0.9% to 1,370 yen and Nintendo Co. Ltd declined 390 yen to 10,290 yen, Fujitsu added 2 yen to 298 yen and Pioneer Corp. slid 3 yen to 185 yen. Sharp Corp slipped 3 yen to 172 yen. Panasonic Corp dropped 16 yen at 407 yen.

Fanuc Corp. plummeted 100 yen to 13,700 yen and Komatsu Ltd down 20 yen to 1,792 yen. Hitachi Construction Machinery Co slumped 19 yen to 1,399 yen.

Sumitomo Heavy decreased 1.7% to 341 yen.

FamilyMart Co Ltd, the convenience chain operator slipped 10 yen to 3,475 yen and Lawson climbed 130 yen to 5,500 yen. Ito En Ltd added 4 yen to 1,474 yen.

Seven & I Holdings Co slid 1 yen to 2,348 yen.

Yamada Denki dropped 30 yen to 3,075 yen. Nitori Holdings Co closed unchanged at 5,970 yen, apparel retailer Shimamura decreased 10 yen to 8,130 yen and Sagami Co up 2 yen to 119 yen.

Fast Retailing Co. increased 60 yen to 17,480 yen and J. Front Retailing Co. Ltd closed unchanged at 386 yen.

Inpex Corp gained 0.6% to 456,500 yen, Japan Petroleum Exploration Co. climbed 37 yen to 2,948 yen. Tokyo Electric Power Co, Inc. slipped 4 yen to 128 yen.

Brokerage companies declined after rallying for four days after investors recalibrated expectations of a change of government at the next election.

Daiwa Securities Group Inc declined 1.4%.

Mitsubishi UFJ Financial Group closed unchanged at 369 yen and Sumitomo Mitsui Financial Group increased 4 yen to 2,562 yen. Nomura Holdings, Inc closed unchanged at 321 yen.

Japan Airlines Co Ltd plummeted 120 yen to 3,610 yen and All Nippon Airways up 3 yen to 175 yen.

Shipping companies advanced after the freight rate index gained 1.7% in London trading, seventh daily increase in a row. Rates for dry bulk commodities shipment, and panamex and capsize categories increased.

Mitsui O.S.K. Lines, Ltd increased 7 yen to 204 yen and Kawasaki Kisen Kaisha, Ltd added 1 yen to 105 yen and Nippon Yusen K.K. up 1 yen to 163 yen.