Shippers, Banks Dropped in Japan

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

Japan investors stayed on the sidelines as the prospects of a speedy global recovery looks less and less likely. Bank of Japan in its latest regional survey indicated that economic conditions are severe in most regions but they appear to stabilize.

[R]7:00 PM Tokyo, 5:00 AM New York – Japan investors stayed on the sidelines as the prospects of a speedy global recovery looks less and less likely. Bank of Japan in its latest regional survey indicated that economic conditions are severe in most regions but they appear to stabilize.[/R]

Bank of Japan in economic survey of nine regions reported that economic conditions continue to be severe but the pace of deterioration has declined compared to previous assessment.

According to the regional economic report economies of most regions are still in severe situation and Hokkaido reported stagnant economy, severe conditions in Tohoku, Hokuriku, and Kinki, and Kanto-Koshinetsu and Kyushu-Okinawa have stopped getting worse after “deteriorating significantly.”

The survey also noted that private consumption is weak in all regions and business fixed investment “continued to decline substantially” in many regions on significant fall in profits.

The Nikkei 225 Index in Tokyo closed lower 33.08 or 0.34% to 9,647.79.

Gainers & Losers

Japanese investors are increasingly growing cautious after global market conditions appear to uncertain. A measure of freight rate for ocean shipping declined for the fourth day in a row in London trading.

Shipping lines, industrials, exporters and banks fell in trading.

Mitsui OSK Lines Ltd dropped 2.7% to 552 yen, Nippon Yusen KK fell

Nippon Steel Corp declined 2.6% to 342 yen, Kobe Steel dropped 2.2% to 174 yen and JFE Holding dropped 1.6% 3,060 yen.

Battery makers declined after investors sold environmental theme oriented companies. GS Yuasa Corp decreased 7.1% to 791 yen and Sanyo Electric fell 5.6% to 218 yen.

Automakers closed mixed. Toyota Motor decreased 0.5% to 3,590 yen, Honda Motor decreased 3.5% to 2,490 yen and Daihatsu Motor Company soared 7.1% to 995 yen on “buy” recommendation from Deutsche Bank AG. Hino Motors dropped 3.4% to 281 yen.

Utilities and pharmaceutical companies traded higher. Tokyo Electric Power Company added 1.4% to 2,485 yen but Yokogawa Electric fell 4.3% to 644 yen.

Banks declined. Mizuho Financial dropped 4.9% to 216 yen and Sumitomo Mitsui Financial dropped 2.8% to 3,810 yen.

Asian Markets Review


The Nikkei 225 Index in Tokyo closed lower 33.08 or 0.34% to 9,647.79, Hang Seng index in Hong Kong decreased 117.14 or 0.65% to 17,862.27, CSI 300 index in China lower 34.26 or 1.02% to 3,340.49. ASX 200 index in Australia decreased 16.80 or 0.44% to 3,766.90. The KL Composite index in Malaysia closed higher 0.53 or 0.05% to 1,066.36.

The Kospi Index in South Korea increased 5.26 or 0.37% to close at 1,434.20. JSE Index in Indonesia increased 48.24 or 2.37% to 2,083.25. The Sensex index in India increased 127.05 or 0.90% to 14,170.45. The markets of Thailand were closed today.

Nikkei 200 Average Movers

Meidensha Corp led the decliners in the Nikkei 225 index of 7.9% followed by losses in GS Yuasa Corporation of 7.1%, in Sanyo Electric Co Ltd of 5.6%, in Tokyu Land Corp of 5.1% and in Mizuho Financial Group Inc of 4.8%.

Sumco Corp led gainers in the Nikkei 225 index with a rise of 6.1% followed by gains in Ajinomoto Co. Inc of 4.0%, in Asahi Breweries Ltd of 3.7% and Yamato Holdings Co Ltd of 3.3%.