Japan Stocks Down 1.4%; Nissen Plunges 10%

123jump.com Staff
06 Jul, 2009
New York City

Nikkei 225 Average fell 1.4% on weak commodities and energy related stocks. Nippon Yusen and Mitsui OSK were among the leading decliners. The mail order house Nissen Holdings Co dropped 9.5% after it lowered its earnings estimate by 85%.

[R]8:00 PM Tokyo, 6:00 AM New York – Nikkei 225 Average fell 1.4% on weak commodities and energy related stocks. Nippon Yusen and Mitsui OSK were among the leading decliners. The mail order house Nissen Holdings Co dropped 9.5% after it lowered its earnings estimate by 85%.[/R]

Stocks in Tokyo in light trading declined after commodities prices fell. Japan based shipping companies, metals and mining companies and commodities trading companies led the decliners.

The Nikkei 225 Average in Tokyo closed lower 135.20 or 1.38% to 9,680.87 on light trading volume of 1.64 billion shares.

Gainers & Losers

Investors have been worried about the international trade and commodities prices and purchases from China are expected to decline.

Nippon Yusen K.K. declined 3.4% to 396 yen and Mitsui OSK dropped 4.4% to 567 yen after the measure of freight rate declined in London trading on Friday.

Inpex Corp fell 3% to 713,000 yen and Nippon Oil dropped 2.8% to 514 yen. Mitsui & Company dropped 3.1% to 1,083 yen, Marubeni dropped 3.1% to 402 yen and

Denki Kagaku Kogyo KK surged 5.1% to 284 yen after Nomura raised the rating on the company to ‘buy’ from ‘neutral’ citing higher prices for automotive plastics.

Earnings Review

The retailer Fuji Co increased 0.2% to 1,715 yen after it reported first quarter sales increase of 5.1% to 77 billion yen and net income of 114 million yen.

The convenience chain operator FamilyMart Co declined 1% to 2,920 yen after it reported for the quarter ending on May 31 by 17% to 3.95 billion yen on 0.4% decline in sales to 70.1 billion yen.

The steak house restaurant chain Don Co decreased 0.2% to 443 yen after it reported 8.3% decline in sales to 6.7 billion yen and reported a loss of 240 million yen.

The mail order house Nissen Holdings Co dropped 9.5% to 344 yen after it lowered its annual earnings outlook by 85%.

The sushi restaurant chain Kappa Create Co increased 3.7% to 2,085 yen after it reported first quarter sales increase of 22% and net income increase of 29% to 1.01 billion yen.

The medical supplies and equipment maker Mani Inc increased 1% to 6,400 yen after it reported net income for the nine months increased 1.3% to 1.53 billion yen.

The photovoltaic solar cell manufacturer NPC Inc decreased 1.1% to 5,200 yen after it reported third quarter sales surged 84% and net income jumped 160% to 1.66 billion yen.

Nikkei 200 Average Movers

IHI Corporation led decliners in the Nikkei 225 index of 6.6% followed by losses in Credit Saison Co., Ltd of 5.2%, in Pacific Metals Co Ltd of 5.1%, in Sanyo Electric Co Ltd of 4.9% and in Toho Zinc Co., Ltd of 4.7%.

Denki Kagaku Kogyo KK led gainers in the Nikkei 225 index with a rise of 5.1% followed by gains in Yahoo Japan Corporation of 3.2%, in Shionogi & Co Ltd of 2.6% and Fukuoka Financial Group, Inc of 1.9%.

Asian Markets Review

The Nikkei 225 Average in Tokyo closed lower 135.20 or 1.38% to 9,680.87, Hang Seng index in Hong Kong decreased 223.99 or 1.23% to 17,979.41 and CSI 300 index in China closed higher 47.62 or 1.43% to 3,374.75. ASX 200 index in Australia decreased 44.50 or 1.16% to 3,783.70. The KL Composite index in Malaysia closed lower 6.86 or 0.64% to 1,065.83.