In Japan Yen Climbs, Flu Worries

Darlington Musarurwa
21 May, 2009
New York City

Investors in Japan focused on a sudden and unexpected rise in swine flu cases. Yen continues to rise against dollar. Exporters declined on yen and retailers fell on flu worries.

[R]7:00 PM Tokyo, 8:00 AM New York – Investors in Japan focused on a sudden and unexpected rise in swine flu cases. Yen continues to rise against dollar. Exporters declined on yen and retailers fell on flu worries.[/R]

The recent strength in yen rally has confounded analysts and economists. The yen has strengthened against dollar despite the current strength of the dollar. The rise in yen has roiled sentiment in the stock market.

The rapid spread of swine flu in Japan caught attention of investors. The Heath Ministry said that confirmed cases has increased to 234 in three regions from four only two weeks.

Stocks in Tokyo trading edged lower. The Nikkei 225 Index in Tokyo closed lower 80.49 or 0.86% to 9,264.15. Retailers and fast food restaurant companies led the decliners. Investors worried that fewer people will travel, eat outside and venture to public places like retail malls.

Gainers & Losers

Seven & I Holdings Co the largest retailer declined 2.3% to 2,360 yen and Aeon dropped 3.2% to 855 yen. Isetan Mitsukoshi fell 1.5% to 814 yen and J Front Retailing dropped 2.7% to 366 yen.

The strength in yen dragged exporters lower. Canon declined 2.4% to 3,230 yen, Sony Corp declined 0.2% to 2,500 yen and Citizens Holdings dropped 2.4% to 501 yen.

Daiwa Securities Group declined 2.9% to 570 yen, Nomura Holdings edged 0.6% to 673 yen and Mizuho Financial declined 0.9% to 227 yen.

Nikkei 200 Average Movers

Unitika Ltd. led the decliners in the Nikkei 225 index of 6.0% followed by losses in CSK Holdings Corporation of 4.5%, in Toyota Tsusho Corp. of 4.4 %, in Toppan Printing Co., Ltd of 4.1% and in Takashimaya Co Ltd of 3.8%.

Mazda Motor Corporation led gainers in the Nikkei 225 index with a rise of 6.6% followed by gains in Chiyoda Corp. of 5.2%, in NEC Corporation, of 4.8% and Kuraray Co Ltd of 3.6%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 80.49 or 0.86% to 9,264.15, Hang Seng index in Hong Kong decreased 276.35 or 1.58% closed to 17,199.49, CSI 300 index in China lower 62.86 or 2.23% closed to 2,750.01. ASX 200 index in Australia decreased 10.70 or 0.28% closed to 3,813.90. The KL Composite index in Malaysia lower 7.07 or 0.68% closed to 1,035.56.

The Kospi Index in South Korea decreased 14.05 or 0.98% to close at 1,421.65. SET index in Thailand closed lower 12.64 or 2.25% to 548.77.The Sensex index in India decreased 324.12 or 2.31% closed to 13,736.54. The Markets of Indonesia were closed today.