Nikkei Plunge Leads Asia Sell Off, Shippers and Steel Makers Drop

Hiruki Nakamura
29 Sep, 2015
New York City

Nikkei average plunged 4% and led the Asia-wide decline on the ongoing Chinese economy slowdown worries. Shipping companies plunged more than 5% after a mid-tier shipper announced a plan to file bankruptcy.

[R]4:30 PM Tokyo – Nikkei average plunged 4% and led the Asia-wide decline on the ongoing Chinese economy slowdown worries. Shipping companies plunged more than 5% after a mid-tier shipper announced a plan to file bankruptcy.[/R]

Market indexes in Asia plunged after Japanese stocks sold off on the ongoing worries in China and a mid-tier shipping prepared to file a bankruptcy protection.

Shipping companies and steel makers led the decliners after a second day sell-off after Chinese industrial companies reported 8.8% decline in earnings.

The Nikkei 225 Stock Average plunged 714.27 or 4.1% to 16,930.84 and the broader Topix index slumped 63.15 or 4.4% to 1,375.52.

The yen strengthened to 119.42 against a dollar.

Stocks in Review

Daiichi Chuo Kisen Kaisha was halted at 28 yen after the shipping transportation services provider said it intends to file bankruptcy protection after suffering from losses from European financial crisis and weak Chinese economy.

The company will be delisted on the Tokyo stock exchange from October 30 and as of March end Daiichi Chuo had a total liabilities of about 119.6 billion yen.

Mitsui OSK Lines Ltd stock tumbled 7.4% to 288 yen and the lead investor in Daiichi Chuo and the shipping company estimated to book a special loss in an earning report due on October 30 of about 25 billion yen or $209.4 million.

Japan Tobacco Inc slumped 3.9% to 3,961 yen after the tobacco products maker agreed to acquire certain brand rights from the U.S.-based Reynolds American Inc for about 600 billion yen or $5 billion in cash.

Kobe Steel, Ltd tumbled 11.1% to 128 yen after the steel producer forecasted net income for the year of about 25 billion yen 58% lower than the July estimate of 60 billion yen.

The company estimated sales for the year to fall 2.6% to 1.9 trillion yen and operating profit to decline 24% to 95 billion yen.

In fiscal 2015, Kobe reported net profit of 86.5 billion yen.

Sharp Corporation plunged 5.4% to 139 yen after the electronic products maker plans to sell its head office building in Osaka, a nearby building and the land for about 18.8 billion yen.