Japan's 30-Year Bond Auction Yields 1.8%, Nikon Plunges 14%

Hiruki Nakamura
09 Aug, 2013
New York City

Japanese government completed 456 billion yen 30-year bond auction that yielded 1.804%. The Nikkei index plunged 5.9% in the week as the yen strengthened. Nikon plunged 14% after quarterly net plunged 72% and camera maker lowered its fiscal year outlook.

[R]4:30 PM Tokyo – Japanese government completed 456 billion yen 30-year bond auction that yielded 1.804%. The Nikkei index plunged 5.9% in the week as the yen strengthened. Nikon plunged 14% after quarterly net plunged 72% and camera maker lowered its fiscal year outlook.[/R]

The Nikkei index in Tokyo edged up in choppy session and for the week plunged as investors turned cautious ahead of fundamental reforms including sales tax increase in the next few months.

The Nikkei 225 Stock Average edged up 9.63 to 13,615.19 and the Topix rose 3.35 to 1,142.94. For the week, Nikkei 225 plunged 5.9%.

The Nikkei index trimmed gains in the last three months and the benchmark index is still up 33% in the year so far, leading all developed market indexes.

The yen gained in Tokyo trading to one-month high to close at 96.43 against one dollar.

Japanese government completed 30-year bond auction and received 1.888 trillion yen bids and awarded 456.7 billion yen bonds.

The nominal coupon was 1.9% and the yield at the lowest accepted price was 1.804%. Ministry of Finance allotted 66.81% of bids at the lowest accepted price.

Stocks in Review

Toyota Motor Corp rose 10 yen to 6,170 yen and Honda Motor Co. added 15 yen to 3,700 yen. Nissan Motor Co Ltd decreased 6 yen to 1,038 yen.

Sony jumped 16 yen to 1,943 yen. Canon Inc fell 70 yen to 3,065 yen.

Nikon plunged 288 yen or 14.3% to 1,726 yen after the camera maker reported net sales in the first quarter ending in June dropped 7.9% to 239 billion yen from 259.4 billion yen a year earlier. Net income tumbled 72% to 4.44 billion yen compared to 15.77 billion yen. Diluted earnings per share declined to 11.17 yen from 39.72 yen a year ago.

Nikon lowered its outlook for the first-half ending in September and expects net sales of 477 billion yen from earlier estimate of 507 billion yen.

Nikon share plunged after cutting of its net profit forecast from 16 billion yen to 8 billion yen.

Fanuc Corp decreased 20 yen to 14,990 yen and Softbank Corp climbed 70 yen to 6,240 yen.

Seven & I Holdings Co slipped 35 yen to 3,585 yen and Fast Retailing Co. dropped 450 to 31,650 yen.

Mitsubishi UFJ Financial Group up 2 yen to 609 yen and Sumitomo Mitsui Financial Group gained 25 yen to 4,530 yen.

Mitsubishi Paper Mills Limited climbed 4.4% to 95 yen and the paper manufacturer is scheduled to release earnings after the market close.