Topix Ends Five-day Rally in Japan, Weak Oil Drags Explorers in Asia

Hiruki Nakamura
26 Nov, 2014
New York City

Topix index in Tokyo edged lower after advancing for five days in a row. Tokyo Stock Exchange abandoned its plan to increase or add trading hours after resistance from brokerage firms. Inpex, Japan Petroleum Exploration and Taiyo Nippon Sanso dropped after oil dropped to a four-year low.

[R]4:30 PM Tokyo – Topix index in Tokyo edged lower after advancing for five days in a row. Tokyo Stock Exchange abandoned its plan to increase or add trading hours after resistance from brokerage firms. Inpex, Japan Petroleum Exploration and Taiyo Nippon Sanso dropped after oil dropped to a four-year low.[/R]

Stocks in Tokyo edged lower after crude oil futures slid to a four-year low. The steady and persistent decline in oil price in the last five months has changed the dynamic of the many economies in Asia and emerging markets.

The Bank of Japan said services producer price index in October climbed 3.6% from a year earlier, increase for the 16th months in a row.

The Nikkei 225 Stock Average fell 24.04 to 17,383.58 and the broader Topix index slid 2.75 to 1,406.40.

The Topix index declined for the first time after rising for five days in a row.

The yen slipped 0.2% to 117.61 against one dollar.

The Tokyo Stock Exchange scrapped a plan to increase or add trading hours in a day amid resistance from brokerage firms.

Yesterday, Japan Exchange Group Inc. Chief Executive Officer Atsushi Saito told reporters in Tokyo that the exchange will not implement any of the options

Stocks in Review

Itochu Corporation gained 0.9% to 1,367.50 yen after the trading company agreed to merge iron ore production company NAMISA from Brazilian steel mill Companhia Siderurgica Nacional.

Nippon Life Insurance Company, the life insurer acquired additional 9% stake in India-based Reliance Capital Asset Management Limited in transaction for about $100 million.

The company already holds 26% stake valued 12.5 billion yen or $1.2 billion in the company and also agreed to increase its stake up to 49% within 2 years after the completion of this transaction.

OMRON Corporation dropped 2.9% to 5,290 yen after the medical equipment maker completed acquisition of 2.82 million treasury stock through open market transaction worth 15 billion yen.

TDK Corp rose 0.4% to 7,110 yen after the magnetic products maker announced to absorb its subsidiary TDK-EPC Corp.

The subsidiary includes passive electronic components and includes operations of EPCOS AG headquartered in Germany.