Nikkei Drops 0.8%, Cerberus to Sell Aozora Bank Stake

Nigel Thomas
07 Jan, 2013
New York City

Stocks in Tokyo turned lower after a sharp rally in the last four sessions in a row as the yen paused from its decline. Aozora Bank plunged after its controlling shareholder Cerberus Capital filed to sell its stake.

[R]7:00 PM Tokyo – Stocks in Tokyo turned lower after a sharp rally in the last four sessions in a row as the yen paused from its decline. Aozora Bank plunged after its controlling shareholder Cerberus Capital filed to sell its stake.[/R]

Stocks in Tokyo traded lower after rising for four days in a row as the yen weakened.

Traders turned cautious after a steep rise in the Nikkei index in the last two weeks of trading as the yen paused from its retreat.

The Nikkei 225 Stock Average dropped 89.10 or 0.8% to 10,599.01 and the broader Topix Index slipped 7.45 to 881.06.

The yen edged lower to 87.82 against one dollar but recovered from its low to close at 87.32.

Traders are also awaiting a possible replacement for Bank of Japan Governor later in April. Terms of Governor Masaaki Shirakawa and two assistants are expiring in April and announcement for a replacement or reappointment is expected as early as next month.

Stocks in Review

Toyota Motor Corp. plummeted 75 yen to 4,185 yen and Honda Motor Co. dropped 40 yen to 3,230 yen and Nissan Motor Co Ltd down 3 yen to 851 yen. Mazda Motor Corp lowered 5 yen 180 yen.

Nippon Steel slid 2 yen to 216 yen and JFE Holdings Inc decreased 16 yen to 1,634 yen.

Shimano Inc gained 10 yen to 5,700 yen.

Sony Corp slumped 11 yen to 957, Canon Inc declined 90 yen to 3,330 yen and Nikon decreased 45 yen to 2,611 yen.

Nintendo Co. Ltd dropped 230 yen to 8,950 yen and Pioneer Corp. increased 8 yen to 226 yen.

Fanuc Corp. declined 630 yen to 15,910 yen and Komatsu Ltd advanced 32 yen to 2,322 yen. Hitachi Construction Machinery Co decreased 25 yen to 1,857 yen.

Softbank Corp declined 2% to 3,065 yen after Crest Financial said it will ask Federal Communications Commission to block Softbank’s acquisition of Sprint. Crest said it will also ask regulators to block Sprint’s purchase of Clearwire Corp in which Crest holds a stake.

FamilyMart Co Ltd, the convenience chain operator climbed 70 yen to 3,640 yen and Lawson increased 100 yen to 6,080 yen. Ito En Ltd gained 14 yen to 1,629 yen.

Seven & I Holdings Co soared 126 yen to 2,617 yen. Fast Retailing Co. advanced 610 yen to 22,810 yen and J. Front Retailing Co. Ltd gained 5 yen to 493 yen.

Aozora Bank dropped 10% to 250 yen and after the close the bank filed with the Tokyo Stock Exchange to sell 591.25 million shares that it holds in the bank.

Mitsubishi UFJ Financial Group slipped 8 yen to 476 yen and Sumitomo Mitsui Financial Group dropped 35 yen to 3,190 yen.

Nomura Holdings, Inc declined 26 yen or 4.9% to 498 yen on the worries that the stock has run ahead of its fundamentals.

Mitsui O.S.K. Lines, Ltd up 4 yen to 263 yen and Nippon Yusen K.K. slid 1 yen to 204 yen.