Toyota to Settle U.S. Criminal Probe for $1, Japan Display Falls on Debut

Hiruki Nakamura
19 Mar, 2014
New York City

Stocks in Tokyo lacked direction in trading and the yen advanced slightly. Toyota is said to agree to a settlement of $1 billion with the U.S. regulator for its criminal probe. The automaker is still facing several investigations.

[R]4:30 PM Tokyo – Stocks in Tokyo lacked direction in trading and the yen advanced slightly. Toyota is said to agree to a settlement of $1 billion with the U.S. regulator for its criminal probe. The automaker is still facing several investigations.[/R]

Stocks in Tokyo gyrated in trading and market indexes lacked direction after the trading in yen guided the stock market direction.

Toyota was in focus after the company is said to have agreed to a $1 billion settle the criminal probe with the U.S. regulator.

The authorities alleged that the auto maker misled the government agency and mishandling of the probe linked to unintended acceleration in its vehicles and the recalled that followed in 2009.

The Nikkei 225 Stock Average rose 51.25 or 0.4% to 14,462.52 and the Topix index fell 1.61 to 1,164.33.

The yen closed nearly unchanged at 101.57 against the U.S. dollar.

Stocks in Review

Toyota Motor Corp slumped 42 yen to 5,508 yen after the auto-maker is expected to avoid criminal charges after a settlement of $1 billion with the U.S. Justice Department regarding allegations that the company misled the U.S. authorities after the complaints to recall millions of vehicles in early 2009.

Toyota has already paid $1.6 billion to car owners in a separate and private lawsuits brought by various car owners.

The auto maker also paid the largest ever fine by an automaker of $16.4 million in 2010 and a $17.4 million in 2012 for the lack of timely communication with the transportation industry regulator in the U.S.

The company is still facing various probes conducted by the U.S. Congress and a federal safety regulator.

Toyota generates 75% of its revenues in overseas markets.

Honda Motor Co fell 8 yen to 3,555 yen. Nissan Motor Co Ltd rose 0.3% to 872 yen.

Sony gained 11 yen to 1,731 yen. Softbank Corp slid 32 yen to 8,340 yen.

Naikai Zosen dropped 6% to 170 yen after the company estimated wider than expected loss of 2.2 billion yen.

Fast Retailing Co jumped 600 yen to 36,190 yen after its apparel chain Uniqlo said it is not in talks to buy J.Crew Group Inc, the U.S. clothing retailer from its private equity owner.

Japan Display Inc plunged 15.2% to 763 yen after the smart-phone and tablet display maker’s debut of its initial public offering priced shares of 318.5 billion yen or $3.1 billion.

The issue opened on the Tokyo Stock Exchange at 769 yen or $7.58, 14.5% lower than its offering price.

KOSE Corporation fell 0.2% to 3,145 yen after the cosmetics products maker plans to acquire 93.5% stake in the U.S.-based cosmetics maker Tarte Inc. for about $135 million in April and expand in international markets.