Nikkei at Close Cuts Half the Losses of the Day, Yen Gains

Hiruki Nakamura
16 Apr, 2013
New York City

Financial markets in Tokyo recovered some of the 1% losses in indexes and resources linked companies led the decliners. The yen gained and Softbank plunged as much as 9% after a competing bid from Dish may force the company to lift its bid for Sprint.

[R]5:30 PM Tokyo – Financial markets in Tokyo recovered some of 1% losses in indexes and resources linked companies led the decliners. The yen gained and Softbank plunged as much as 9% after a competing bid from Dish may force the company to lift its bid for Sprint.[/R]

The benchmark Nikkei index recovered from its decline of more than 1% by mid-day and the yen rebounded.

The yen strengthened to 97.90 against one dollar as the weakness in precious metals drove speculators to the U.S. dollar.

The Nikkei 225 Stock Average slipped 54.22 or 0.4% to 13,221.44 and the broader Topix Index dropped 14.79 or 1.3% to 1,119.20.

Market sentiment turned negative for the second day in a row as the latest world economic data suggested softening growth rates.

China reported elevated but declining economic growth rates and India struggled to lift industrial production. In addition, South Korea, the euro zone and Germany showed weaker than expected retail sales and the U.S. struggled with weakening consumer sentiment.

Stocks in Review

Nomura slid 0.9% to 772 yen and Dai-Ichi Life Insurance slumped 3.6%. Mitsui Fudosan fell 2.4% and Mitsubishi Estate Co dropped 2.3%.

Toyota Motor Corp slid 90 yen to 5,450 yen and Honda Motor Co. lowered 65 yen to 3,820 yen and Nissan Motor Co Ltd slipped 20 yen to 991 yen. Yamaha Motor Co Ltd declined 41 yen to 1,275 yen. Mitsubishi Motors Corp fell to 3 yen to 100 yen.

Nippon Steel down 3 yen to 249 yen and JFE Holdings Inc decreased 61 yen to 1,891 yen.

Sony declined 68 yen or 4.1% to 1,690. Canon Inc slipped to 3,610 yen and Nikon slid 32 yen to 2,150 yen. TDK Corp gained 5 yen to 3,215 yen. NEC fell 4 yen to 263 yen.

Nintendo Co. Ltd slipped 100 yen to 11,330 yen.

Fanuc Corp. jumped 60 yen to 15,230 yen and Komatsu Ltd lowered 33 yen to 2,400 yen. Hitachi Construction Machinery Co decreased 51 yen to 2,143 yen.

Softbank Corp plunged 320 yen or 6.8% to 4,365 yen after Dish Network offered an unsolicited $25.5 billion for the control of Sprint Nextel Corp. The Dish offer may force Softbank to lift its bid higher.

Softbank and Dish are offering to acquire 70% of Sprint but Dish is offering 13% more in its bid. In New York trading, Sprint stock traded above the $7 a share offer price, indicating investors expect bidding to go higher.

FamilyMart Co Ltd, the convenience chain operator climbed 80 yen to 4,115 yen and Lawson gained 30 yen to 7,250 yen. Ito En Ltd fell 16 yen to 2,480 yen.

Seven & I Holdings Co increased 15 yen to 3,620 yen. Fast Retailing Co. jumped 450 yen to 33,800 yen and J. Front Retailing Co. Ltd lowered 9 yen to 795 yen.

Mitsubishi UFJ Financial Group dropped 24 yen to 639 yen and Sumitomo Mitsui Financial Group declined 155 yen to 4,355 yen. Dai-Ichi Life slumped 3.6% to 129,700 yen. Nomura Holdings, Inc fell 7 yen to 772 yen.