Corporate Japan Skeptical of Abenomics, Machinery Orders Fall 8.8%

Hiruki Nakamura
12 Jun, 2013
New York City

Market indexes in Japan extended losses and the yen gained nearly 3%. Machinery orders declined in April as corporate Japan stays on the sideline and look for the Abenomics to deliver tangible results.

[R]5:30 PM Tokyo – Market indexes in Japan extended losses and the yen gained nearly 3%. Machinery orders declined in April as corporate Japan stays on the sideline and look for the Abenomics to deliver tangible results.[/R]

Market indexes in Tokyo continued to slide and the yen gained nearly 3% as corporate Japan take wait-and-see approach on Abenomics.

The yen gained after the Bank of Japan failed to offer more measures to stabilize the bond market and the latest machinery orders were weaker than expected.

Machinery orders declined 8.8% in April from March, Cabinet Office said today. The weakness in the orders only highlighted the corporate Japan to wait and see how the latest monetary and government stimulus works out in the quarters to come.

The Nikkei 225 Stock Average slid 28.30 to 13,289.32 and Topix index fell 4.61 to 1,096.54.

The yen strengthened to 96.03 against one dollar in today’s trading.

Stocks in Review

Toyota Motor Corp slipped 110 yen to 5,860 yen and Honda Motor Co. slid 60 yen to 3,575 yen and Nissan Motor Co Ltd dropped 24 yen to 1,038 yen.

Sony fell 23 yen to 2,000. Canon Inc jumped 50 yen to 3,235 yen and Nikon gained 41 yen to 2,526 yen.

Fanuc Corp climbed 220 yen to 14,850 yen Softbank Corp closed unchanged at 5,500 yen.

Tokyo Electric Power Company, Inc surged 38 yen or 7.1% to 572 yen despite the parliament’s lower house committee passed the first phase of a proposal to open up the power sector to competition.

Seven & I Holdings Co increased 125 yen to 3,475 yen. Fast Retailing Co. closed unchanged at 31,250 yen.

Mitsubishi UFJ Financial Group down 11 yen to 604 yen and Sumitomo Mitsui Financial Group slumped 60 yen to 4,165 yen.

Nomura Real Estate Master Fund, Inc. plunged 6.2% to 93,800 yen from the initial public offering price of 100,000 yen on the first day of trading. The largest public offering in the year so far raised 175 billion yen.