Tokyo Stocks Fell 3.4%, Trade Surplus Rose

123jump.com Staff
16 Jan, 2008
New York City

Tokyo stocks declined, tracking losses in the U.S. and European markets. Nikkei 225 plunged 3.35% or 468.12 to 13,504.51, while the broader Topix Index slid 47.83 to 1,302.37. In a barrage of economic news market sentiment soured on weak domestic economy and weaker global investment setiment. Machinery orders fell 5.9% in November, domestic corporate goods price index rose 2.6% in December, and export price index fell 1.8%. Preliminary November trade surplus rose to 9.32 trillion yen.

[R]5:00AM New York, 7:00PM Tokyo - Japan’s private sector machinery orders fell 2.8% in November. Producer prices climbed 2.6% in December.[/R]

In Tokyo trading Nikkei 225 plunged 3.35% or 468.12 to 13,504.51, while the broader Topix Index slid 47.83 to 1,302.37.

In the first section of the Tokyo Stock Exchange 13.6 billion shares worth 1.5 trillion yen were traded and in the second section 484 million shares worth 6.4 billion yen changed hands.

Of the Nikkei 225 stocks 22 gained, 199 declined, and 4 were unchanged.

Japan’s Cabinet Office reported today that the total value of machinery orders received by 280 manufacturers operating in the country slipped 5.9% in November from the previous month on a seasonally adjusted basis to 2.6 trillion yen.

Private sector orders, excluding volatile orders, plunged 2.8% in November from the month earlier on a seasonally adjusted basis to 1.04 trillion yen.

Also manufacturing orders declined 1.7%, while non-manufacturing orders rose 3.1% worth 512 billion yen and 571.5 billion yen correspondingly.

However government orders gained 11.7% to 269 billion yen and overseas orders dropped 18.4% to 1.05 trillion yen.

The Bank of Japan reported today that the domestic corporate goods price index rose 2.6% in December from 2.3% in November as energy and raw material costs increased.

Petroleum and coal products spiked 0.24% in December.

In addition, the export price index fell 1.8% in December from 2.1% in November, while the import price index soared 12.6% from 8.7% recorded in November.

Japan’s Ministry of Finance reported today in the preliminary balance of payments statistics for November that exports climbed to 68 trillion yen from 71.1 trillion in October.

November imports stood at 59.50 trillion yen from 59.528 trillion in October and generated trade surplus of 9.32 trillion yen.

Of the Nikkei 225 stocks Nippon Meat Pack led advancers with a rise of 6.74% followed by gains of 5.86% in Kansai Electric Power, of 3.34% in Chubu Electric Power, of 2.97% in Secom Company Limited, and in Osaka Gas Company Limited of 2.8%.

Nippon Meat Pack rose after Mizuho Securities lifted the rating to ‘buy’ from ‘hold’ and

Kansai Electrical Power also rose after Nikko Citigroup raised its rating on the stock to “buy” from “hold”.

Other utilities rose as well. Tokyo Electrical Power jumped 1.08%.

Fanuc Limited led declining Nikkei 225 stocks with a drop of 10.27% followed by losses of 9.07% in Nippon Sheet Glass Limited, of 8.92% in Sanyo Electric, of 8.86% in Shin-Etsu Chemicals of 8.86%, and in Nitto Boseki Company of 8.85%.

Domestic economy related stocks fell after producer prices rose 2.5% in December from a year earlier sparking worries that corporate profits will decline.

Financial stocks declined after Citigroup announced a record fourth quarter net loss $9.83 billion and $18.1 billion write-down on subprime securities.

Local television broadcaster NHK also reported that Mizuho’s subprime losses might expand while Mitsubishi UFJ Financial Group may post a 50 billion yen loss. Mitsubishi UFJ Financial Group shed 4.70% and Mizuho Financial Group tumbled 8.75%.

Oil prices for February delivery slipped 2.4% to $91.90 a barrel. Inpex Holdings shed 7.08% on the news.

Exporters fell as well on a strengthening yen that rose as high as 106.61 against the dollar and after the U.S. Commerce Department announced yesterday that retail sales fell 0.4% in December.

Canon dropped 2.58%, Toyota Motor Corporation climbed down 3.98% and Sony Corporation edged lower 6.77%.

Komatsu Limited said today in a statement filed with the Tokyo Stock Exchange it will pay 43 billion yen or 1,250 yen a share, a premium of 50%, for machine tool maker Nippei Toyama Corporation. Komatsu closed down 7.44%.