Gloom in Tokyo Trading Deepens; Toyota, SoftBank, Fast Retailing Drop

Hiruki Nakamura
11 Apr, 2014
New York City

Market indexes in Tokyo extended losses in the week and two widely followed indexes plunged around 7%. Toyota declined for the seventh day in a row. Fast Retailing extended plunge to 13% in the week on profit warning. SoftBank Corp, Komatsu Ltd and Aisin Seiki Corp led decliners.

[R]4:30 PM Tokyo – Market indexes in Tokyo extended losses in the week and two widely followed indexes plunged around 7%. Toyota declined for the seventh day in a row. Fast Retailing extended plunge to 13% in the week on profit warning. SoftBank Corp, Komatsu Ltd and Aisin Seiki Corp led decliners.[/R]

Gloom in Tokyo trading deepened and market indexes registered one of the worst weekly declines in the last three years since the earthquake in March 2011.

The Nikke index and the broader Topix index plunged after the yen gained and investors sold stocks of exporters and walked away from high flying tech stocks. Yahoo Japan declined 2%, Fast Retailing extended weekly loss to 13% and Toyota declined for the seventh day in a row.

The Nikkei 225 Stock Average declined 340.07 or 2.4% to 13,960.05 and the Topix index slipped 15.40 or 1.4% to 1,134.09.

For the week, Nikkei 225 plunged 7.3%.

The yen strengthened to 101.73 against the U.S. dollar.

Stocks in Review

Toyota Motor Corp slid 7 yen to 5,314 yen. Honda Motor Co rose 25 yen to 3,445 yen. Nissan Motor Co Ltd fell 1.4% to 904 yen.

Toyota stock declined for the seventh day in a row.

This week Toyota recalled 6 million vehicles around the world and Aisin Seiki Co dropped 2.6% to 3,435 yen. The parts maker is one of the suppliers involved in the recall.

Sony decreased 3 yen to 1,876 yen.

Softbank Corp declined 274 yen or 3.8% to 6,900 yen.

Fast Retailing Co plunged 2,890 yen or 7.9% to 33,820 yen after the fashion retailer and operator of the Uniqlo casual clothing chain forecasted its operating profit for the year to decline 6.7%.

Kurotani Corporation dropped 2.5% to 539 yen after the Japan-based non-ferrous metal products maker said net sales in the second-quarter ending in February jumped 4% to 25.8 billion yen from 24.8 billion yen a year ago.

Net income in the quarter tumbled 80% to 98 million yen compared to 494 million yen and diluted earnings per share declined to 13.80 yen from 69.04 yen a year earlier.

System Integrator Corp slipped 1.3% to 770 yen after the Japan-based software company reported net sales in the year ending in February climbed 33.7% to 3.55 billion yen from 2.66 billion yen a year earlier.

Net income in the year jumped 9.6% to 272 million yen compared to 248 million yen and diluted earnings per share increased to 49.17 yen from 45.21 yen a year ago.