Japan Stocks Decline 1.5%

123jump.com Staff
18 Feb, 2009
New York City

Bank of Japan begins two-day policy meeting. Crude steel production declined 37.8% in January according to the latest data from the industry association. Shipping lines Kawasaki Kisen climbed 3% and Mitsui OSK Lines of 5% after the freight rates index gained.

[R]5:00AM New York, 7:00PM Tokyo - Bank of Japan begins two-day policy meeting. Japan''s crude steel production declined 37.8% in January.[/R]

Japan market averages dropped on mounting concern the economic recession will deepen notwithstanding the $787 billion stimulus package that was signed into law by President Barack Obama yesterday.

In Tokyo trading Nikkei 225 fell 1.5% or 111.07 to 7,534.44, and the broader Topix Index declined 1% or 7.27 to 749.26.

In the first section of the Tokyo Stock Exchange 19.5 billion shares worth 1.2 trillion yen were traded and in the section 231 million shares valued at 2 billion yen changed hands.

Of the Nikkei 225 index stocks, 60 rose, 156 dropped, and 9 were unchanged. CSK Holdings Corp. led advancers in the index shares with a rise of 12.7% followed by Taiheiyo Cement advancing 9.6%.

Bank of Japan Begins two day Policy Meeting

Bank of Japan began its two-day policy meeting today under the shadow of a deepening recession and deteriorating conditions on the global financial market.

The meeting also comes in the wake of the resignation of finance minister Shoichi Nakagawa, who was accused of being drunk at the recent G-7 finance ministers meeting.

Finance minister Nakagawa has since been replaced by Kaoru Yosano.

Crude Steel Production Drops 37.8% in January

Nikkei News reported today that the Japan Iron and Steel Federation said the country''s crude steel production declined 37.8% to 6.37 million tons in January.

Honda to Produce 70 to 80 jets from 2010

Bloomberg News reported today that Honda''s chief executive officer Takeo Fukui said in a recent interview the company will scale back production of jets to 70 to 80 jets a year for delivery from the end of 2010.

Fukui added that the company might offer voluntary retirements or work-sharing in the U.S. as the company slashes output. The work-share program would reduce workers'' hours and pay to avoid job cuts.

Gainers & Losers

CSK Holdings Corp. led advancers in the Nikkei 225 index shares with a rise of 12.7% followed by increases in Taiheiyo Cement of 9.6%, in Shimizu Corp. of 9.4%, in Kajima Corp. of 8.1%, and Taisei Corp. of 7.7%.

Shipping lines increased. Kawasaki Kisen climbed 3% and Mitsui OSK Lines of 5%.

Sapporo Holdings led decliners in the Nikkei 225 index shares with a decline of 8.1% followed by losses in Clarion Co. Ltd of 6.4%, in Sompo Japan Insurance of 6.4%, in Shionogi & Co. of 6.3%, and Nomura Holdings of 6%.