Investors in Tokyo Focus on Chinese Reform Details

Hiruki Nakamura
19 Nov, 2013
New York City

Stocks in Tokyo declined and investors focused on the details of the latest Chinese reforms. The People

[R]4:30 PM Tokyo – Stocks in Tokyo declined and investors focused on the details of the latest Chinese reforms. The People’s Bank of China said it will exit from currency market intervention. Olympus agreed to pay 6 billion yen in damages.[/R]

Stocks in Tokyo declined and the yen edged lower and investors focused on the details of latest Chinese reforms.

Stocks eased in Tokyo as market averages lead the developed world markets and investors wait to see more reforms from Japanese government.

People’s Bank Governor Zhou Xiaochuan said China will exit from normal currency market intervention but did not specify the timing of the action.

Chinese leaders agreed to accelerate reforms after a 4-day annual gathering and announced plans to open up markets to more private corporation and increase consumption.

The latest comments from Chinese central bank governor suggests that the central bank is not likely to accumulate additional dollars.

The Nikkei 225 Stock Average fell 37.74 to 15,126.56 and the Topix slid 4.81 to 1,236.86.

The yen strengthened to 99.74 against one dollar and extended loss for two days in a row.

Stocks in Review

Toyota Motor Corp dropped 50 yen to 6,300 yen and Honda Motor Co. declined 45 yen to 4,095 yen. Nissan Motor Co Ltd slid 1 yen to 926 yen.

Sony jumped 24 yen to 1,886 yen after the electronics product maker hired consultant Bain & Co. to identify $100 million in cost reduction through layoff and other means to improve the profitability of its film studio, according to two sources in Tokyo.

Hedge fund manager Daniel Loeb has been pressuring management to trim staff and cut costs.

Softbank Corp fell 50 yen to 7,720 yen. Fast Retailing Co. rose 250 yen to 35,950 yen.

Olympus Corporation climbed 2.9% to 3,280 yen after the medical equipment provider agreed to pay 6 billion yen to settle a damages suit filed by Terumo Corporation, a medical equipment maker over losses related to an accounting scandal.