Nikkei in Tokyo Drops 2.4% on Cyprus Worries

Hiruki Nakamura
22 Mar, 2013
New York City

Stocks in Tokyo fell sharply on the growing uncertainties in the euro zone. The yen gained and commodities eased in Tokyo trading. Broadleaf, a software developer surged 37% on the first day of its trading in Tokyo.

[R]5:30 PM Tokyo – Stocks in Tokyo fell sharply on the growing uncertainties in the euro zone. The yen gained and commodities eased in Tokyo trading. Broadleaf, a software developer surged 37% on the first day of its trading in Tokyo.[/R]

The euro zone worries overshadowed market sentiment in Tokyo trading after Russia rebuffed overtures from Cyprus for emergency financing.

European Central Bank set a firm deadline for Cyprus to accept conditions of bank bailout by the troika of international lenders and demanded that bank depositors pay a one-time tax to pay for 10 billion euro bailout.

However, the deeply unpopular tax on bank deposits was rejected by the Parliament and the government is struggling to cobble together revision to the tax measure to raise 5.8 billion euros.

The yen gained against the dollar and closed at 94.72.

The Nikkei 225 Stock Average dropped 297.16 or 2.4% to 12,338.53 and the broader Topix Index slumped 17.20 or 1.6% to 1,040.80.

For the week, the Nikkei rose 0.5%.

Stocks in Review

Broadleaf, software developer soared 37% from its initial public offering price of 1,080 yen to 1,480 yen.

Seven & I declined 4% to 2,952 yen after Nikkei reported that the operator of convenience chain 7-Eleven may post operating profit of 296 billion yen, lower than the company estimate of 308 billion yen.

Toyota Motor Corp declined 110 yen to 4,880 yen and Honda Motor Co. dropped 100 yen to 3,670 yen and Nissan Motor Co Ltd slumped 29 yen to 946 yen. Yamaha Motor Co Ltd slipped 15 yen to 1,310 yen.

Nippon Steel fell 7 yen to 243 yen and JFE Holdings Inc declined 69 yen to 1,837 yen.

Sony slumped 30 yen to 1,660. Canon Inc slid 35 yen to 3,500 yen and Nikon dropped 74 yen to 2,252 yen. TDK Corp declined 80 yen to 3,360 yen.

Nintendo Co. Ltd decreased 150 yen to 10,380 yen.

Fanuc Corp. plunged 850 yen or 5.5% to 14,510 yen and Komatsu Ltd gained 30 yen to 2,298 yen. Hitachi Construction Machinery Co slipped 12 yen to 2,077 yen.

Softbank Corp declined 90 yen to 3,760 yen.

FamilyMart Co Ltd, the convenience chain operator slumped 75 yen to 4,205 yen and Lawson decreased 30 yen to 7,080 yen. Ito En Ltd slid 20 yen to 2,093 yen.

Seven & I Holdings Co dropped 123 yen or 4% to 2,952 yen. Fast Retailing Co. plummeted 1,370 yen or 4.5% to 29,330 yen and J. Front Retailing Co. Ltd increased 10 yen to 720 yen.

Mitsubishi UFJ Financial Group fell 14 yen to 563 yen and Sumitomo Mitsui Financial Group slipped 70 yen to 3,930 yen. Dai-Ichi Life down 1% to 124,300 yen. Nomura Holdings, Inc lowered 2 yen to 589 yen.