Yen rebound Drags the Nikkei Down 2.6%

Nigel Thomas
16 Jan, 2013
New York City

Stocks in Tokyo fell sharply from a 32-month high after the yen declined for the second day. Market indexes have surged more than 26% in the last two months. Aircraft parts suppliers declined after ANA grounded a fleet of Boeing 787 for inspection after an emergency landing.

[R]7:00 PM Tokyo – Stocks in Tokyo fell sharply from a 32-month high after the yen declined for the second day. Market indexes have surged more than 26% in the last two months. Aircraft parts suppliers declined after ANA grounded a fleet of Boeing 787 for inspection after an emergency landing.[/R]

Stocks fell sharply in Tokyo after the yen closed higher for the second day and market index declined from a 32-month high.

The yen strengthened to 88.11 after trading at a 30-month low of 89.67 after comments from second official in as many days.

Shigeru Ishiba, secretary of the Liberal Democratic Party said that the yen trading between 85 and 90 is desirable.

The Nikkei 225 Stock Average declined 278.64 or 2.6% to 10,600.44 and the broader Topix Index dropped 18.11 or 2% to 888.11.

Markets overlooked the strength in the capital orders. The Cabinet Office said machinery orders increased 3.9% in November from the previous month. The indicator is a leading indicator of capital spending.

Stocks in Review

Aircraft components makers were on the decline after ANA grounded all 17 Boeing 787 Dreamliner planes after smoke in one of the planes forced an emergency landing in Western Japan.

GS Yuasa fell 4.5% to 321 yen, IHI declined 3% and Fuji Heavy Industries declined more than 1.5%. All Nippon Airways Co fell 1.6%.

Sharp Corp slipped 6 yen to 315 yen and Foster Electric Co Ltd dropped 22 yen to 1,322 yen.

Toyota Motor Corp. declined 110 yen to 4,155 yen and Honda Motor Co. dropped 100 yen to 3,280 yen and Nissan Motor Co Ltd slumped 17 yen to 866 yen. Mazda Motor Corp slipped 8 yen 201 yen.

Nippon Steel slid 7 yen to 219 yen and JFE Holdings Inc declined 46 yen to 1,626 yen.

Shimano Inc decreased 140 yen to 5,800 yen.

Sony Corp dropped 26 yen to 969, Canon Inc slumped 140 yen or 4.1% to 3,250 yen and Nikon slipped 123 yen or 4.6% to 2,538 yen.

Nintendo Co. Ltd jumped 120 yen to 9,140 yen and Pioneer Corp. plunged 12 yen or 5.2% to 217 yen.

Fanuc Corp. declined 650 yen or 4.3% to 14,450 yen and Komatsu Ltd slumped 110 yen or 4.6% to 2,265 yen. Hitachi Construction Machinery Co decreased 74 yen to 1,862 yen. Sharp Corp slipped 6 yen to 315 yen.

Softbank Corp dropped 99 yen or 3.3% to 2,936 yen.

FamilyMart Co Ltd, the convenience chain operator climbed 65 yen to 3,640 yen and Lawson advanced 60 yen to 6,210 yen. Ito En Ltd slipped 4 yen to 1,677 yen.

Seven & I Holdings Co gained 10 yen to 2,650 yen. Fast Retailing Co. declined 1,100 yen or 4.6% to 22,720 yen and J. Front Retailing Co. Ltd slumped 13 yen to 495 yen.

Mitsubishi UFJ Financial Group slid 14 yen to 469 yen and Sumitomo Mitsui Financial Group dropped 100 yen to 3,235 yen. Dai-Ichi Life decreased 2.9% to 130,000 yen.

Nomura Holdings, Inc decreased 14 yen to 480 yen on the worries that the stock has run ahead of its fundamentals.

Mitsui O.S.K. Lines, Ltd dropped 12 yen or 4.1% to 279 yen and Nippon Yusen K.K. declined 10 yen or 4.5% to 214 yen.