Japan Stocks Lower, Sumitomo Mitsui Plunges 7%

123jump.com Staff
15 Jun, 2009
New York City

The summit of G-8 ministers debated exit strategies to unwind the unprecedented government stimulus. The talks of lower government spending dragged commodities lower. Sumitomo Mitsui Financial plunged 7% and it plans to raise $9.2 billion. Japan Tobacco surges after it acquires UK based Tribac Leaf.

[R]7:00 PM Tokyo, 6:00 AM New York – The summit of G-8 ministers debated exit strategies to unwind the unprecedented government stimulus. The talks of lower government spending dragged commodities lower. Sumitomo Mitsui Financial plunged 7% and it plans to raise $9.2 billion.[/R

Stocks in Japan declined as G-8 nations debated the strategies to unwind government stimulus. The talks of lower government spending spooked commodities and metals markets.

The Nikkei 225 Index in Tokyo closed lower 96.15 or 0.95% to 10,039.67 and Sumitomo Mitsui Financial Group dropped 7% to 4,050 yen.

Gainers & Losers

Sumitomo Mitsui Financial Group Inc led the decliners in the index after Nikkei newspaper reported larger than expected stock offering. After the close, the second largest realtor said it plans to raise 923 billion yen, higher than previous estimate of 834 billion offering.

Mitsubishi UFJ Financial Group dropped 3.2% to 631 yen, Mizuho Financial declined 3.7% to 260 yen and Nomura Holdings fell 2.3% to 896 yen. T&D Holding dropped 4% to 2,905 yen.

Minerals and metals related stocks closed lower. Weak commodities prices dragged stocks of oil explorers and refiners as well.

Sumitomo Metals and Mining declined 4.6% to 1,505 yen, Toho Zinc Company decreased 3.4% to 422 yen and Japan Steel Works fell 3% to 1,233 yen. Japan Petroluem fell 2% to 5,510 yen.

Tokyo Land surged 5.7% to 463 yen Sumitomo Realty soared 6.8% to 1,792 yen after Daiwa Securities indicated higher condo sales as the economy rebounds and prices increase.

Aeon Company increased 1.3% to 1,009 after positive comments from Merrill Lynch.

Yahoo Japan Corp surged 4.6% to 31,950 yen and West Japan Railway Company increased 1.3% to 317,000.

Nikkei 200 Average Movers

Sumitomo Mitsui Financial Group Inc led the decliners in the Nikkei 225 index of 6.9% followed by losses in Tokyo Electron Ltd of 5.4%, in Tokai Carbon Co Ltd of 4.9%, in Nippon Soda Co Ltd of 4.8% and in Advantest Corp of 4.6%.

CSK Holdings Corporation led gainers in the Nikkei 225 index with a rise of 14.2% followed by gains in Maruha Nichiro Holdings Inc of 7.5%, in Japan Tobacco Inc of 7.2% and Teijin Ltd of 6.9%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 96.15 or 0.95% to 10,039.67, Hang Seng index in Hong Kong decreased 390.72 or 2.07% closed to 18,498.96, CSI 300 index in China higher 59.91 or 2.06% closed to 2,966.19. ASX 200 index in Australia decreased 30.50 or 0.75% closed to 4,031.70. The KL Composite index in Malaysia higher 1.02 or 0.09% closed to 1,091.17.

The Kospi Index in South Korea decreased 16.17 or 1.13% to close at 1,412.42.SET index in Thailand closed lower 16.63 or 2.65% to 611.92 and JSE Index in Indonesia decreased 21.07 or 1.01 % closed to 2,069.88. The Sensex index in India decreased 362.42 or 2.38% closed to 14,875.52.