Nikkei Halts 4-Day Gains, Kawasaki Postpones Fleet Expansion

Nigel Thomas
28 Nov, 2012
New York City

Nikkei in Tokyo fell 1.2% and the Topix declined 1.3% after indexes rallied for four days as the yen weakened in the last two weeks. Sakurada plunged 92% after the company filed for bankruptcy proceedings. Kawasaki Kaisen postponed fleet expansion on a global glut.

[R]7:00 PM Tokyo – Nikkei in Tokyo fell 1.2% and the Topix declined 1.3% after indexes rallied for four days as the yen weakened in the last two weeks. Sakurada plunged 92% after the company filed for bankruptcy proceedings. Kawasaki Kaisen postponed fleet expansion on a global glut.[/R]

The benchmark index in Japan declined for the first time after rallying for four days as investors ran out of reasons to bid up stocks.

In the last two weeks the Nikkei gained 7.5% after Japan called for a general election and raised the prospect of a win by the opposition party that may lead to weaker yen and more economic stimulus from the central bank.

Shinzo Abe, the opposition leader made several forceful calls for the central bank to make more accommodation to weaken the yen and stimulate the economy.

The so called Abe rally lifted the indexes and market is now stretched on valuation. The yen edged up and exporters weakened again and investors shifted attention to the ongoing protracted budget negotiations in the U.S.

The Nikkei 225 Stock Average plummeted 114.95 or 1.2% to 9,308.35 and the broader Topix Index dropped 10.21 or 1.3% to 771.39.

The yen edged higher and closed at 81.79 against one dollar after two weeks of decline.

Stocks in Review

Sakurada Co plunged 92% to 1 yen after the construction company filed for bankruptcy proceedings.

Toyota Motor Corp. declined 55 yen to 3,475 yen and Honda Motor Co. plummeted 56 yen to 2,672 yen and Nissan Motor Co Ltd decreased 10 yen to 773 yen. Mazda Motor Corp slipped 3 yen to 125 yen.

Isuzu Motors Ltd down 0.6% to 470 yen

Hulic Co. fell 12% to 571 yen after the realtor said it plans to raise as much as 37 billion yen in a public offering, according to a filing with the Finance Ministry.

Nippon Steel down 5 yen to 187 yen and JFE Holdings Inc dropped 49 yen to 1,218 yen. Tokyo Steel Manufacturing plunged 17 yen or 5.6% to 284 yen.

Fujikura Ltd slumped 3.3% to 232 yen and TDK declined 140 yen or 4.3% to 3,130 yen. Murata Manufacturing Co decreased 90 yen to 4,500 yen and Meiko Electronics Co Ltd dropped 3.7% or 651 yen.

Shimano Inc slumped 90 yen to 5,310 yen.

Oki Electric Industry closed unchanged at 77 yen, Ricoh Co Ltd slipped 18 yen to 759 yen, Sony Corp down 12 yen to 803 and Seiko Epson Corp decreased 9 yen to 473 yen. Canon Inc dropped 89 yen to 2,817 yen and Nikon slipped 4 yen to 2,143 yen.

Olympus Corp. down 0.4% to 1,375 yen and Nintendo Co. Ltd declined 150 yen to 9,990 yen, Fujitsu slid 8 yen to 297 yen and Pioneer Corp. plunged 12 yen or 6% to 191 yen. Sharp Corp decreased 5 yen to 164 yen. Panasonic Corp lowered 2 yen at 401 yen.

Fanuc Corp. plummeted 270 yen to 13,820 yen and Komatsu Ltd declined 39 yen to 1,805 yen. Hitachi Construction Machinery Co slumped 47 yen to 1,394 yen.

Sumitomo Heavy dropped 5.4% to 335 yen.

FamilyMart Co Ltd, the convenience chain operator decreased 10 yen to 3,585 yen and Lawson climbed 40 yen to 5,500 yen. Ito En Ltd increased 14 yen to 1,515 yen.

Seven & I Holdings Co lowered 11 yen to 2,359 yen.

Yamada Denki declined 89 yen to 2,844 yen. Nitori Holdings Co jumped 70 yen to 6,040 yen, apparel retailer Shimamura gained 30 yen to 8,330 yen and Sagami Co slid 2 yen to 118 yen.

Fast Retailing Co. advanced 50 yen to 18,430 yen and J. Front Retailing Co. Ltd closed unchanged at 395 yen.

Inpex Corp slipped 0.8% to 448,500 yen, Japan Petroleum Exploration Co. dropped 23 yen to 2,837 yen. Tokyo Electric Power Co, Inc. slid 1 yen to 130 yen.

Mitsubishi UFJ Financial Group down 6 yen to 373 yen and Sumitomo Mitsui Financial Group declined 31 yen to 2,592 yen. Nomura Holdings, Inc decreased 12 yen to 336 yen.

Japan Airlines Co Ltd gained 5 yen to 3,715 yen and All Nippon Airways slumped 6 yen to 171 yen.

Kawasaki Kisen Kaisha, Ltd dropped 5 yen or 4.6% to 103 yen after the company said it will postpone expansion of the commodity-vessel fleet on weak cargo rates and a glut in ocean freight capacity.

Mitsui O.S.K. Lines, Ltd plummeted 10 yen or 4.9% to 196 yen and Nippon Yusen K.K. declined 8 yen or 4.5% to 169 yen.