Tokyo Loss of 2.3% Mirrors Global Declines

123jump.com Staff
27 Jul, 2007
New York City

It was a repeat of sell-off what Wall Street and European markets faced a day ago. All market sectors reflected in the index declined. The recent sell-off nearly wiped out the gains of the year so far. June retail sales fell 0.4% in japan dragging retail sales with it.Canon and Fujitsu fell more than 5%.

[R]7:00AM New York, 8:00PM Tokyo – Tokyo declines mirroring losses in Europe and the U.S.[/R]

Nikkei 225 Index in Tokyo dropped 2.36% or 418.28 to 17,283.81 and Topix fell 37.47 or 2.33% to close at 1,699.71. For the week Nikkei lost 4.8% and curtailed its gain for the year to 0.3% and Topix dropped 4.3% and limiting its rise for the year to 1.1%.

The unwinding of carry trade in the region and a decline in the U.S. and European markets dominated the trading sentiment in Tokyo. The stocks fell at the opening and continued to trade lower in the session.

Decliners

Fujitsu plunged 6% to 789 yen after reporting a net loss of 14.8 billion yen. The company reported its first loss after nine quarterly profits in a row.

Canon plunged 5.5% to 6,510 yen, Nintendo lost 6.2% to 58,000 yen, and automakers fell as well in the sell-off. Toyota Motor dropped 1.8% and Honda Motor lost 2.5%. Daihatsu, Nissan and other makers fell as well.

Trading companies, oil refiners, and mining companies fell for the second day in a row after surging year to date. The largest oil refiner Nippon Oil lost 6.4% to 1,047 yen and largest oil explorer Inpex declined 3.2% to 1.2 million yen.

Retailers fell after reporting a surprise sales decline in June. Seven & I Holdings dropped 1.2% to 3,390 yen, supermarket operator Aeon Co. lost 4.6% to 1,917 yen, and Seiyu Limited declined 1.5% to 129 yen.

Ministry of Economy Trade and Industry reported that retail sales in June fell 0.4% from a year ago. Sales at large retailers were up 0.9% and wholesales sales were up 5.3%

Metals and oil trading companies dropped for the second day in a row. Sumitomo Mining, Marubeni, Mitsui Mining declined more than 2%. Nippon Steel was dragged in the sell off as well. Shipping companies repeated the losses of more than 2.2% for the second day in a row.

Gainers

Toyota group of companies saw their stocks rise on a day of sell-off. Hino Motors gained 1.3% to 791 yen after reporting a sharp rise in earnings on overseas sales. Toyota Tsusho, trading company in the group rose 4% to 3,130 yen after reporting earnings gain.