Stocks in Tokyo Plunge, Auto Sales Dip

123jump.com Staff
02 Mar, 2009
New York City

Japan stock indexes dropped after wages dropped in January on worsening conditions on the global financial markets. Domestic sales of new cars excluding mini-vehicles fell 32.4% to 218,212 units in February as sales from Toyota and Honda plunged 32% and 21% respectively.

[R]5:00AM New York, 7:00PM Tokyo - Japan wages fell 1.3% to 278,476 yen in January.[/R]

Japan stock indexes plummeted after a labor report showed the wages dropped in January on worsening conditions on the global financial markets.

In Tokyo trading Nikkei 225 index declined 3.8% or 288.27 to 7,280.15 and the broader Topix Index tumbled 2.9% or 22.12 to 734.59.

In the first section of the Tokyo Stock Exchange 7.7 billion shares worth 480 billion yen were traded and in the second section 102 million shares valued at 783 million yen changed hands.

Of the Nikkei 225 index stocks, 12 increased, 210 declined, and 3 were unchanged. Nomura Holdings led advancers in the index shares with a rise of 4.6% after the company last week decided to make a public offering of up to 750 million new shares to raise 300 billion yen.

Wages Fall 1.3% to 278,476 yen in January

Ministry of Health, Labour and Welfare reported that the country’s total cash earnings fell 1.3% to 278,476 yen in January, while contractual cash earnings and scheduled cash earnings dropped 1.2% to 265,182 yen and 0.1% to 248,664 yen, respectively.

Non-scheduled cash earnings shed 14.8 to 16,518 yen and special cash earnings plunged 3.8% to 13,294 yen.

The ministry also noted that the total hours worked declined 1% to 137 hours as scheduled hours worked rose 0.2% to 128.1 hours and non-scheduled hours worked tumbled 15.2% to 8.9 hours.

In addition, regular employees rose 1% to 44,968, while full-time employees increased 0.7% to 33,137 and part-time employees advanced 1.5% to 11,831.

Japan to Support Key Companies with Public Funds

Yomiuri News reported today that Japan’s government is considering key companies that have a significant impact on employment and the economy.

Government will also support small and medium sized companies that supply special technologies in order to boost the capital of non-financial private companies.

Companies that have performed badly for an extended period of time will however not be covered.

According to the report, a revised bill for the Industrial Revitalization Law has been presented to the Diet and will enable the Development Bank of Japan to invest in private companies and cover 50% to 80% of their losses with private funds.

New Cars Sales Falls

The Japan Automobile Dealer’s Association reported today that the country’s domestic sales of new cars excluding mini-vehicles fell 32.4% to 218,212 units in February as sales from Toyota and Honda plunged 32% and 21% respectively.

Gainers & Losers

Nomura Holdings led gainers in the Nikkei 225 index shares with a rise of 4.6% followed by increases in CSK Holdings Corp. of 2.9%, in Japan Airlines of 2.7%, in Yokohama Rubber of 2.4%, and T & D Holdings of 2%.

Nomura Holdings increased after the company last week elected to make a public offering of up to 750 million new shares in order to raise 300 million yen.

Citizen Holdings led decliners in the Nikkei 225 index shares with a decline of 8.6% followed by losses in Shinko Securities of 8.4%, in Toho Zinc of 8%, in Inpex Holdings 7.8%, and Nippon Soda Co. of 7.8%.