Yen Strength Worries Japanese Exporters

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

Stocks in Japan edged lower for the eight day in a row. Yen hovered at 4-month high against dollar and euro and investors turned cautious ahead of earnings next week. Investors are increasingly questioning if the four month rally has come to an end.

[R]6:00 PM Tokyo, 4:00 AM New York – Stocks in Japan edged lower for the eight day in a row. Yen hovered at 4-month high against dollar and euro and investors turned cautious ahead of earnings next week. Investors are increasingly questioning if the four month rally has come to an end.[/R]

Stocks in Japan struggled as investors increasingly fear protracted global recession and slow recovery in the U.S. and Western European economies.

The Nikkei 225 Index in Tokyo closed lower 3.78 or 0.04% to 9,287.28 and interest rate on 10-year Japanese government bond increased to 1.295%.

The Japanese yen closed down at 92.28 yen against dollar and against euro at 128.56, down 1.77 yen.

Gainers & Losers

In weaker than average trading volume stocks fell. Shipping lines and trading companies closed lower after the measure of freight rate index declined in London trading.

Kawasaki Kisen dropped 4% to 348 yen, Mitsui OSK Lines Ltd dropped 2.9% to 542 yen and Nippoin Yusen decreased 3.3% to 380 yen.

Tokyo Electron increased 0.7% to 4,270 yen after it reported first fiscal quarter orders increased sequentially 82% to 49 billion yen.

Sapporo Holdings added 4.8% after the company guided 0.4% higher shipment in the first half of this calendar year.

Image Holdings Co Ltd surged 13.78% followed gains in Gulliver International Co of 11.96%, Internet Initiative Japan rose 10.7% and Hokuriku Holdings Co Ltd increased 10.64%.

S Science Co Ltd plunged 33% followed by losses in Touei Housing Corp of 11.5% and in Kenedix Inc of 9.9%.

ABC-Mart increased 2.2% to 2,565 yen after it first quarter sales increase of 10% and net income rise of 7.9%.

Nikkei 200 Average Movers

Meidensha Corp led the decliners in the Nikkei 225 index of 8.6% followed by losses in Pioneer Corp of 6.2%, in Ebara Corp of 6.0%, in All Nippon Airways Co Ltd of 5.7% and in Oki Electric Industry Co Ltd of 4.2%.

Sapporo Holdings Ltd led gainers in the Nikkei 225 index with a rise of 4.7% followed by gains in Mitsubishi Logistics Corp of 4.5%, in Clarion Co Ltd of 3.6% and Denso Corp of 3.3%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 3.78 or 0.04% to 9,287.28, Hang Seng index in Hong Kong decreased 82.17 or 0.46% to 17,708.42, CSI 300 index in China higher 2.01 or 0.06% to 3,398.31. ASX 200 index in Australia increased 30.80 or 0.82% to 3,794.10. The FTSE Bursa KL Composite index in Malaysia closed higher 2.08 or 0.20% to 1,067.76.

The Kospi Index in South Korea decreased 2.27 or 0.16% to close at 1,428.62. SET index in Thailand closed lower 15.96 or 2.74% to 566.03 and JSE Index in Indonesia decreased 20.88 or 1.00% to 2,063.09. The Sensex index in India decreased 253.24 or 1.84% to 13,504.22.