Third Day Decline in Nikkei, TDK Drops 4%

Marcus Jacob
23 Jan, 2013
New York City

Nikkei index declined for the third day in a row as investors shifted attention to corporate earnings and the yen firmed. Bank of Japan set a 2% target and pledged to purchase assets from 2014. TDK dropped 4% on the earnings worries.

[R]5:00 PM Tokyo – Nikkei index declined for the third day in a row as investors shifted attention to corporate earnings and the yen firmed. Bank of Japan set a 2% target and pledged to purchase assets from 2014. TDK dropped 4% on the earnings worries.[/R]

Stocks in Tokyo declined sharply after investors shifted attention to corporate earnings and worried that the latest rally may have stretched markets.

The Nikkei 225 Stock Average plummeted 222.94 or 2.1% to 10,486.99 and the broader Topix Index declined 13.36 or 1.5% to 887.79.

The Nikkei declined for the third day in a row after the Bank of Japan announcement fell short of expectations and yen firmed.

The yen gained to 88.33 against one dollar.

Stocks in Review

GS Yuasa closed unchanged at 312 yen, IHI slipped 6 yen to 230 yen and Fuji Heavy Industries dropped 17 yen to 1,109 yen. All Nippon Airways Co closed unchanged at 180 yen.

Sharp Corp gained 3 yen to 324 yen after Reuters reported that the company has halted the production of screens for iPads as Apple manages its inventory.

Toyota Motor Corp. declined 85 yen to 4,155 yen and Honda Motor Co. slumped 55 yen to 3,285 yen and Nissan Motor Co Ltd decreased 24 yen to 842 yen. Mazda Motor Corp slipped 8 yen to 209 yen.

Nippon Steel down 6 yen to 222 yen and JFE Holdings Inc dropped 62 yen to 1,634 yen.

Shimano Inc increased 10 yen to 5,760 yen.

Sony Corp slumped 25 yen to 1,167, Canon Inc closed unchanged at 3,275 yen and Nikon dropped 79 yen to 2,558 yen. TDK Corp declined 4% after Nikkei business daily said the hard disk maker was estimated to report 30% fall in operating earnings in the December quarter on weak demand for smartphone components.

Nintendo Co. Ltd climbed 80 yen to 9,200 yen and Pioneer Corp. plunged 13 yen or 6% to 205 yen.

Fanuc Corp. declined 250 yen to 13,950 yen and Komatsu Ltd slipped 40 yen to 2,286 yen. Hitachi Construction Machinery Co dropped 46 yen to 1,863 yen.

Softbank Corp decreased 16 yen to 2,945 yen.

FamilyMart Co Ltd, the convenience chain operator gained 40 yen to 3,620 yen and Lawson advanced 80 yen to 6,290 yen. Ito En Ltd jumped 20 yen to 1,722 yen.

Seven & I Holdings Co dropped 37 yen to 2,624 yen. Fast Retailing Co. declined 570 yen to 22,330 yen and J. Front Retailing Co. Ltd slumped 17 yen to 478 yen.

Mitsubishi UFJ Financial Group slipped 8 yen to 464 yen and Sumitomo Mitsui Financial Group decreased 55 yen to 3,200 yen. Dai-Ichi Life plummeted 4.9% to 123,600 yen.

Nomura Holdings, Inc declined 22 yen to 467 yen on the worries that the stock has run ahead of its fundamentals.

Mitsui O.S.K. Lines, Ltd plunged 18 yen or 6.1% to 279 yen and Nippon Yusen K.K. dropped 8 yen to 208 yen.