Weak Steel Output in Japan; Nippon Steel Falls

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

The Japan Iron and Steel Federation reported another monthly decline in domestic steel production in May. For the year steel production is 45% lower from a year ago. Steelmakers, autos and trading companies declined in Tokyo trading. Kawasaki Kisen led decliners among shippers.

[R]7:00 PM Tokyo, 6:00 AM New York – The Japan Iron and Steel Federation reported another monthly decline in domestic steel production in May. For the year steel production is 45% lower from a year ago. Steelmakers, autos and trading companies declined in Tokyo trading.[/R]

The familiar worries of global economic recovery and rising yen dimmed the prospects of earnings recovery in Japan. After fourteen weeks of rally in Asian and global markets, investors are looking for alternative themes that can generate returns for the rest of the year.

The Nikkei 225 Index in Tokyo closed lower 137.13 or 1.39% to 9,703.72 Miners, real estate trusts and auto stocks fell in trading on no new news. The yen traded near 95.50 to one dollar.

Gainers & Losers

Exporters and auto stocks declined after yen strengthened. Honda Motor declined 2.6% to 2,650 yen, Toyota Motor fell 1.9% to 3,650 yen and Nissan Motor dropped 3.3% to 560 yen.

Steelmakers fell after the trade association reported nearly one third decline in production in May compared to a year ago and for the year till May steel production is down to 55.7% from a year ago.

Nippon Steel declined 4.2% to 365 yen, Japan Steel Works decreased 3.2% to 1,185 yen JFE Holdings fell 2.4% to 3,200 and Fuji Heavy Industries dropped 4% to 367 yen.

Trading companies and shippers declined. Kawasaki Kisen declined 4.4% to 413 yen and Nippon Yusen dropped 3.4%. Marubeni Corp fell 4% to 433 yen and Mitsui & Company declined 3.7% to 1,139 yen.

Nikkei 200 Average Movers

Nippon Mining Holdings Inc led the decliners in the Nikkei 225 index of 6.7% followed by losses in Sumitomo Metal Industries Ltd of 6.6%, in CSK Holdings Corp of 6.5%, in Mizuho Trust & Banking Co Ltd of 5.8% and in Konica Minolta Holdings Inc of 5.7%.

Showa Denko KK led gainers in the Nikkei 225 index with a rise of 7.2% followed by gains in Meidensha Corp of 6.2%, in Citizen Holdings Co Ltd of 4.3% and Kirin Holdings Co Ltd of 4.1%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 137.13 or 1.39% to 9,703.72, Hang Seng index in Hong Kong decreased 307.94 or 1.70% closed to 17,776.66, CSI 300 index in China higher 46.84 or 1.56% closed to 3,057.43. ASX 200 index in Australia decreased 12.00 or 0.31% closed to 3,892.10. The KL Composite index in Malaysia lower 16.49 or 1.54% closed to 1,054.41.

The Kospi Index in South Korea decreased 15.41 or 1.11% to close at 1,375.76.SET index in Thailand closed lower 15.71 or 2.68% to 570.43 and JSE Index in Indonesia decreased 73.98 or 3.65% closed to 1,950.99. The Sensex index in India decreased 257.31 or 1.77% closed to 14,265.53.