Nikkei Declines 1% on Yen Volatility; Gree, Pioneer, Daikin Fall

Hiruki Nakamura
13 Feb, 2013
New York City

The benchmark index in Tokyo fell 1% after the yen inched higher on conflicting comments from G7 officials. The yen direction is setting the tone in stock market as investors forecast more weakness. Japan is set to release economic growth data tomorrow. Pioneer, Daikin, Gree and Mazda led decliners.

[R]5:00 PM Tokyo – The benchmark index in Tokyo fell 1% after the yen inched higher on conflicting comments from G7 officials. The yen direction is setting the tone in stock market as investors forecast more weakness. Japan is set to release economic growth data tomorrow. Pioneer, Daikin Industries, Gree and Mazda led decliners.[/R]

Stock in Tokyo traded lower after the yen edged higher on conflicting comments from the G7 officials.

Investors were cautious ahead of the release of economic growth data tomorrow and equity markets trailed the sentiment in the currency trading.

Japan is expected to report 0.4% annual growth in the quarter to December, lifting the nation from its third recession in five years.

However, investors sold stocks of financial services and automakers as the volatility in the yen remained front and center. Investors also focused on the comments from the G20 finance ministers meeting finishing this weekend.

The Nikkei 225 Stock Average dropped 117.71 or 1% to 11,251.41 and the broader Topix Index slipped 11.48 or 1.2% to 957.02.

The yen rebounded to 93.02 against one dollar and rose to 125.03 against one euro after investors feared that the yen may have too far too fast.

Stocks in Review

Gree Inc plunged 15% to 1,150 yen after the social game maker lowered its profit outlook on new product delays and slower growth in overseas markets.

Yamada Denki increased 35 yen to 3,675 yen and Japan Airlines Co dropped 55 yen to 4,490 yen. GS Yuasa slipped 5 yen to 324 yen, IHI decreased 8 yen to 243 yen and Fuji Heavy Industries declined 31 yen to 1,293 yen. All Nippon Airways slid 2 yen 190 yen.

Toyota Motor Corp. slumped 90 yen to 4,830 yen and Honda Motor Co. slipped 30 yen to 3,515 yen and Nissan Motor Co Ltd closed unchanged at 950 yen. Mazda Motor Corp decreased 8 yen to 283 yen.

Nippon Steel slumped 8 yen to 265 yen and JFE Holdings Inc declined 68 yen to 2,094 yen.

Daikin Industries declined 6% to 3,480 yen after it reported nine-months income declined 38% to 1.95 billion yen.

Fujitsu Ltd lowered 8 yen to 416 yen and Sony plunged 77 yen or 5.6% to 1,304. Canon Inc dropped 45 yen to 3,260 yen and Nikon fell 9 yen to 2,079 yen. TDK Corp increased 45 yen to 3,275 yen.

Olympus Corp dropped 2.5% to 2,020 yen after the camera maker lowered its annual outlook to a loss of 16 billion yen on an impairment loss at its imaging division.

THK Co, the maker of precision motors increased 8.6% to 1,683 yen after it lifted full-year income outlook.

Nintendo Co. Ltd gained 30 yen to 8,710 yen and Pioneer Corp. tumbled 24 yen or 10.7% to 201 yen.

Fanuc Corp. slid 20 yen to 14,810 yen and Komatsu Ltd fell 7 yen to 2,408 yen. Hitachi Construction Machinery Co decreased 30 yen to 2,136 yen.

Asahi Glass increased 12 yen to 639 yen. Softbank Corp declined 75 yen to 3,470 yen.

FamilyMart Co Ltd, the convenience chain operator closed unchanged at 3,765 yen and Lawson dropped 90 yen to 6,780 yen. Ito En Ltd slipped 18 yen to 1,757 yen.

Seven & I Holdings Co lowered 9 yen to 2,797 yen. Fast Retailing Co. down 180 yen to 24,680 yen and J. Front Retailing Co. Ltd decreased 9 yen to 526 yen.

Mitsubishi UFJ Financial Group fell 10 yen to 533 yen and Sumitomo Mitsui Financial Group slumped 70 yen to 3,805 yen. Dai-Ichi Life gained 3.5% to 135,300 yen. Nomura Holdings, Inc dropped 18 yen to 540 yen.

Takeda Pharmaceutical Co closed unchanged at 4,675.

Mitsui O.S.K. Lines, Ltd decreased 12 yen to 306 yen and Nippon Yusen K.K. slipped 6 yen to 216 yen. Kawasaki Kisen Kaisha Ltd declined 5% to 184 yen