Exporters and Automakers Lead 2.6% Plunge in Nikkei

Hiruki Nakamura
02 Oct, 2014
New York City

Market indexes in Tokyo plunged after the yen gained and investors turned cautious on stretched valuation. Honda, Nissan and Mitsubishi issued domestic auto recalls. Japan Airlines plunged after the first reported case of Ebola virus in the U.S.

[R]4:30 PM Tokyo – Market indexes in Tokyo plunged after the yen gained and investors turned cautious on stretched valuation. Honda, Nissan and Mitsubishi issued domestic auto recalls. Japan Airlines plunged after the first reported case of Ebola virus in the U.S.[/R]

Stocks traded lower and market indexes plunged in volatile trading after the yen strengthened and investors stayed cautious on high market valuation.

Exporters and automaker led the decliners after Honda Motor Co, Nissan Motor Co and Mitsubishi Corp issued recalls.

The Nikkei 225 Stock Average declined 420.26 or 2.6% to 15,661.99 and the broader Topix index dropped 38.06 to 1,280.15.

The yen traded at 108.63 against one U.S. dollar.

Stocks in Review

Ichigo Group Holdings Co Ltd fell 0.8% to 257 yen after the real estate developer’s subsidiary starts operation of its tenth solar power plant in eastern Hokkaido Prefecture, aimed to provide renewable energy across Japan.

Nagaileben Co., Ltd slumped 3% to 2,076 yen after the surgical wear and materials maker said net sales in the year ending in August increased 3.8% to 4.92 billion yen from 4.87 billion yen a year ago period.

Net income in the period jumped 3.4% to 3.22 billion yen compared to 3.12 billion yen and earnings per share rose to 94.14 yen from 90.84 yen a year earlier.

Seven & I Holdings Co., Ltd dropped 1.9% to 4,162.50 yen after the supermarkets and specialty stores operator reported revenue in the first-half ending in August jumped 7% to 3 trillion yen from 2.81 trillion yen a year ago period.

Net income in the period rose 0.7% to 83.90 billion yen compared to 83.35 billion yen and earnings per share edged up to 94.90 yen from 94.34 yen a year earlier.

S-Pool, Inc declined 4.7% to 1,034 yen after the outsourcing service provider said revenue in the third-quarter ending in August soared 22.6% to 4.85 billion yen from 3.95 billion yen a year ago period.

Net income in the quarter surged 251.3% to 121 million yen compared to 34 million yen and earnings per share jumped to 44.10 yen from 13.41 yen a year earlier.