Nikkei Extend Losses in Choppy Trading on Global Worries

Hiruki Nakamura
27 Feb, 2013
New York City

Nikkei indexes declined for the second day in a row and extended losses to 4% and pared the yearly gain to 8.8%. The yen was in focus ahead of the central bank chief nomination.

[R]5:00 PM Tokyo – Nikkei indexes declined for the second day in a row and extended losses to 4% and pared the yearly gain to 8.8%. The yen was in focus ahead of the central bank chief nomination.[/R]

Stocks in Tokyo declined for the second day in a row and the Nikkei index dropped the most for two days in the last fifteen months.

The Nikkei 225 Stock Average dropped 144.84 or 1.3% to 11,253.97 and the broader Topix Index slipped 13.05 to 953.72.

The yen rebounded against the dollar to 91.77 from the low of 90.85 in yesterday’s session.

Market indexes in Japan have been outperforming global markets on the hopes that Prime Minister Shinzo Abe will nominate a candidate as the next central bank chief who prefers easier monetary policies.

Investors are worried that the euro zone debt problems may resurface and drive the yen stronger. The yen has lost 20% of its value against the U.S. dollar and dropped to near a 3-year low on Monday to 94.77.

Stocks in Review

Japan Tobacco climbed 22 yen to 2,902 yen.

Toyota Motor Corp dropped 110 yen to 4,605 yen and Honda Motor Co. declined 85 yen to 3,330 yen and Nissan Motor Co Ltd slipped 14 yen to 902 yen.

Mazda Motor Corp slumped 7 yen to 269 yen. Yamaha Motor Co Ltd slid 7 yen to 1,075 yen.

Nippon Steel lowered 4 yen to 246 yen and JFE Holdings Inc decreased 38 yen to 1,976 yen.

Kawasaki Kisen dropped 4% to 208 yen after a broker lowered its view on the shipping company.

Sony rose 2 yen to 1,292. Canon Inc declined 90 yen to 3,235 yen and Nikon fell 7 yen to 2,071 yen. TDK Corp slipped 25 yen to 3,140 yen.

Nintendo Co. Ltd decreased 170 yen to 8,910 yen. Dainippon Screen Manufacturing Co added 3 yen to 460 yen.

Fanuc Corp. declined 320 yen to 13,870 yen and Komatsu Ltd slumped 38 yen to 2,255 yen. Hitachi Construction Machinery Co slipped 24 yen to 2,072 yen.

Softbank Corp dropped 90 yen to 3,330 yen.

Fujikura Ltd soared 9% to 291 yen after the company announced a plan to repurchase as many as 2.9% of its outstanding shares.

FamilyMart Co Ltd, the convenience chain operator slumped 95 yen to 3,800 yen and Lawson plummeted 210 yen to 6,730 yen. Ito En Ltd fell 16 yen to 1,857 yen.

Seven & I Holdings Co decreased 97 yen to 2,639 yen. Fast Retailing Co. dropped 380 yen to 24,580 yen and J. Front Retailing Co. Ltd declined 19 yen to 529 yen.

Mitsubishi UFJ Financial Group slid 14 yen to 505 yen and Sumitomo Mitsui Financial Group slumped 110 yen to 3,580 yen. Dai-Ichi Life fell 1.5% to 128,400 yen. Nomura Holdings, Inc decreased 13 yen to 522 yen.