Nikkei Exends Correction to 15% from Peak, Shanghai Plunges Again

Hiruki Nakamura
25 Aug, 2015
New York City

Nikkei deepened losses in the second week following large losses in world markets. However, markets in India and Korea rebounded but in Shanghai plunged again. Sony said it will offer commercial drone services from the next fiscal year. Toyota said it will suspend Prius hybrid production in Thailand

[R]4:30 PM Tokyo – Nikkei deepened losses in the second week following large losses in world markets. However, markets in India, China and Korea rebounded. Sony said it will offer commercial drone services from the next fiscal year. Toyota said it will suspend Prius hybrid production in Thailand.[/R]

Nikkei in Tokyo dropped for the second week in a row following market sell-off in New York and Europe in overnight trading.

The Nikkei 225 Stock Average plunged 733.98 or 3.9% to 17,806.70 and the broader Topix index slumped 48.22 or 3.3% to 1,432.65.

The yen eased to 119.16 against a dollar.

In Monday’s trading, market indexes in New York opened as low as 8% before nearly paring most of the losses but fell around 4% at close in volatile trading.

In addition, crude oil declined below $39 a barrel in new York as production continued to increase despite the price decline of nearly 29% in the year so far.

Stocks in Review

Advance Residence Investment Corp dropped 3% to 248,700 yen after the real estate company agreed to acquire Chiyoda-ku, Tokyo-based Residia Yoyogi II for about 839.60 million yen from AD Investment Management Co., Ltd.

GLM Inc, the Kyoto-based two-door electric sports car maker said it is close to raising 1.7 billion yen or $14 million for production expansion and also plans to launch initial public offering by the first-half of 2017.

Monex Group, Inc slumped 2.8% to 274 yen after the online securities services provider said operating revenues in July jumped 2.4% to 5.11 billion yen from 4.99 billion yen in June and revenues surged 30% from a year ago month.

The company said financial expenses in the month soared 12.9% to 447 million yen compared to 396 million yen in June while edged down from 448 million yen in the same month a year ago.

Sony Corporation slid 0.3% to 2,834 yen after the media conglomerate said it plans to offer commercial drone services from the first-half of next year to the construction, logistics and agriculture industries and estimated sales of up to 20 billion yen by 2020.

Toyota Motor Corp declined 3.9% to 6,725 yen after the auto maker said it will suspend its Prius hybrid vehicles production in Thailand from the next month for an indefinite period, due to weak sales and tariff-related disputes with local authorities.

Toyota plans to appoint 1,400 employees at Japan plants to increase production of Prius hybrids and Land Cruiser SUV.

Toyota has already stopped production after deadly explosions in Tianjin plant in China on August 12 which is expected to remain closed for at least two weeks.