Nikkei Extends Fourth Monthly Decline in August

Hiruki Nakamura
30 Aug, 2013
New York City

Stocks in Japan closed down for the week and for the month and the Nikkei index declined 2% in August. Unemployment rate declined to 3.8% in June inflation in July rose to 0.7%. Investors took a cautious outlook for Japanese stocks after a sharp surge in the year and steady decline since May 23.

[R]4:30 PM Tokyo – Stocks in Japan closed down for the week and for the month and the Nikkei index declined 2% in August. Unemployment rate declined to 3.8% in June inflation in July rose to 0.7%. Investors took a cautious outlook for Japanese stocks after a sharp surge in the year and steady decline since May 23.[/R]

Stocks in Tokyo traded lower and the benchmark Nikkei index closed down for the fourth month in a row and worst monthly decline since July 2012.

The Nikkei 225 Stock Average increased 70.85 or 0.5% to 13,388.86 and the Topix slipped 10.46 to 1,106.05.

For the week and the month the Nikkei 225 dropped 2.23%.

The yen closed at 98.19 and emerging market currencies remained under pressure on the rising prospects of a U.S. led military strike against Syria.

However, UK parliament voted down participation in a military action as the specter of “faulty intelligence” overshadowed the U.S. pressure.

The U.S. is likely to seek help of France and carry out a limited military action as the budgetary constraint forces President Obama to short term goals.

On the economic front, the Ministry of Internal Affairs and Communications said Japan's consumer price inflation in July picked up steam at 0.7% after rising at 0.4% in June.

In a separate report, unemployment rate in July declined to 3.8% from 3.9% in June and household spending rose 0.1% at average price of 286,098 yen following the 0.4% contraction in June.

Ministry of Economy, Trade and Industry reported Industrial production increased at 3.2% annual rate after falling at 3.1% in June.

Stocks in Review

Toyota Motor Corp gained 40 yen to 6,060 yen and Honda Motor Co. fell 30 yen to 3,580 yen. Nissan Motor Co Ltd slid 4 yen to 979 yen.

Sony added 2 yen to 1,969 yen.

Softbank Corp jumped 70 yen to 6,190 yen and Fast Retailing Co. climbed 900 to 31,800 yen.

Hokkaido Electric Power Co jumped 3.5% to 1,154 yen and the electricity producer expects first-half loss of 1 billion yen compared to 48.6 billion yen a year earlier.

Sumco Corporation gained 1.6% to 820 yen after the silicon wafers maker estimated operating profit for the half-year to July surged 80%.