Japan Shipping Orders Plunged 91%

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

Stocks in Tokyo dropped 2% as global market weakness and continued worries with banking sector in the U.S. and UK resurfaced. Most banks in Japan and in Asia fell as more capital will be needed by the banks to restore balance sheets. Shipping industry export orders plunged 91% in December.

[R]5:00AM New York, 7:00PM Tokyo - Japan’s ship export orders declined 91.1% to 274,970 gross tons in December.[/R]

Japan market indices fell led by financial stocks on concern that the protracted economic slump will lead to rising defaults. A continued downgrade in profit projections by corporates also rattled investor sentiment.

In Tokyo trading Nikkei 225 index dropped 2% or 164.15 to 7,901.64, and the broader Topix Index shed 2.2% or 17.88 to 787.15.

The benchmark index slipped below 8,000 for the first time since December 5.

In the first section of the Tokyo Stock Exchange 19 billion shares worth 1.3 trillion yen were traded and in the second section 521 million shares worth 1.9 billion yen changed hands.

Of the Nikkei 225 index stocks, 21 gained, 196 declined, and 8 were unchanged. Taiyo Yuden led gainers in the index shares with a rise of 7.7%.

Japan’s Ship Export Orders Drop 91.1%

Journal of Commerce reported today that Japan’s Ship Exporters’ Association said the country’s orders for export ships plummeted 91.1% to 274,970 gross tons in December from the comparable period a year earlier, falling for the third straight month.

Export orders declined 83.9% in October and 79.7% in November after gaining 10.4% in September.

The report said Japanese builders received orders for six export ships in December, including five bulk carriers and an oil tanker.

On the overall, Japan export orders slipped 21.4% to 432 vessels totaling 19.4 million gross tons- 364 bulk carriers, 48 oil tankers and 20 general cargo vessels- in December from the comparable year ago period.

Toyota to Shed All Temporary Workers

Yomiuri News reported today that Toyota Motor Corp. will eliminate all temporary workers on fixed-term contracts at its 12 domestic plants this summer.

The automaker recently said it will cut temporary worker numbers from 4,500 at the end of 2008 to 3,000 by the end of March.

Toyota stopped hiring workers on fixed-term contracts in June 2008.

Yen Falls]

The yen declined 0.6% to 89.88 against the dollar from 89.84 yesterday.

Gainers & Losers

Taiyo Yuden led gainers in the Nikkei 225 index shares with a rise of 7.7% followed by gains in Clarion Co. Ltd. of 5.1%, in Toyobo Co. Ltd. of 4.8%, in Sky Perfect JSAT of 4.4%, and Citizen Holdings of 3.5%.

Mitsui Sumitomo Financial Group led decliners in the Nikkei 225 index shares with a fall of 10.7% followed by losses in Dowa Holdings of 9.8%, in Mitsubishi UFJ Financial Group of 8.5%, in T& D Holdings of 8.3%, and Sompo Japan Insurance of 7.8%.

Sumco Corp. Cuts Profit Projection

Nikkei News reported today that Sumco Corp. today slashed its net profit forecast for the fiscal year ending January 31 to 18 billion yen on continued slowing demand of electronic devices.