Stocks in Tokyo Fall 3.9%, Office Vacancy Rises

123jump.com Staff
08 Jan, 2009
New York City

Stocks in Tokyo declined 3.9% after rising for seven days in a row. The benchmark index fell after weak unemployment report in the U.S. showed more than expected job losses. Central Tokyo office vacancy rose for the eleventh month in a row. The Bank of Japan will offer 1.2 trillion yen in loans.

[R]5:00AM New York, 7:00PM Tokyo- Tokyo stocks fall on the weak employment report in December. The Bank of Japan to extend 1.2 trillion to support cash starved firms.[/R]

Japan stocks fell snapping a rise of seven days in a row on the news that the U.S. lost 693,000 jobs in December compared to 533,000 jobs shed in November.

In Tokyo trading Nikkei 225 index shares declined 3.9% or 362.82 to 8,876.42, and the broader Topix Index fell 3.1% or 27.36 to 860.89.

In the first section of the Tokyo Stock Exchange 10.6 billion shares worth 735 billion yen were traded and in the second section 116 million shares valued at 1.2 billion yen changed hands.

Of the Nikkei 225 index stocks, 21 rose, 203 declined, and one was unchanged. Mazda Motor Corp. led advancers in the index shares with a rise of 4.3% followed by Mitsubishi Motors gaining 3.6% on news the company will manufacture electric cars for Peugeot next year.

U.S. Private Employers Lose 693,000 Jobs in December

ADP Employer Services reported yesterday that U.S. private employers lost 693,000 jobs in December from 476,000 jobs in November.

Economists had forecasted that 473,000 private sector jobs will be shed in December. Employment in the services sector declined by 473,000, while employment in the goods-producing sectors plunged by 220,000.

ADP noted that large firms slashed 91,000 jobs, medium-sized firms cut 321,000 jobs and small firms shed 281,000 jobs.

Economists are projecting that the official government report will show non-farm payrolls declined by 750,000 in December from the previous projection of 600,000 job loss.

Tokyo Office Vacancies Rise to 4.72% in December

Nikkei News reported today that real estate brokerage firm Miki Shoji Co. said central Tokyo office vacancy rate rose 0.16 percentage point month on month to 4.72% at the end of December, increasing for the 11th consecutive month.

Bank of Japan to Provide 1.2 trillion for Troubled Firms

The Nikkei online edition noted that the Bank of Japan said today it will provide 1.2 trillion yen in emergency lending to financial institutions to help meet their year end financial needs.

Gainers & Losers

Mazda Motor Co. led gainers in the Nikkei 225 index shares with a rise of 4.3% followed by increases in Mitsubishi Motors of 3.6%, in Seven & I Holdings of 3.6%, in Osaka Gas Co. of 2.2%, and Nippon Telegraph of 1.9%.

Mitsubishi Motor Co. rose on news that it will make electric cars for Peugeot next year.

Tokyo Electron led decliners in the Nikkei 225 index shares with a fall of 13% followed by losses in Advantest Corp. of 12%, in Taiyo Yuden Co. of 10.4%, in Sumitomo Chemical Co. of 10.2%, and Mitsubishi Rayon Co. of 9.7%.

Commodity stocks fell as crude oil prices for February delivery dropped 12% to $42.63 a barrel. Copper futures fell 4.5% yesterday and gold prices declined $13 to $845.8 per ounce.

Advantest Corp. and other chipmakers fell after Lenovo reported it will cut 2,500 jobs, which is 11% of its payroll, and after Intel said it fourth quarter sales dropped 23%.