Weak Commodities Drag Japan Stocks

123jump.com Staff
12 Aug, 2009
New York City

Stocks in Japan edged lower on weak commodities prices and stronger yen. In broader trading stocks declined after a rally that lifted the benchmark index more than 40% in ten weeks.

[R]8:00 PM Tokyo, 6:00 AM New York – Stocks in Japan edged lower on weak commodities prices and stronger yen. In broader trading stocks declined after a rally that lifted the benchmark index more than 40% in ten weeks.[/R]

The benchmark index declined after weak commodities and energy prices and rising yen dampened the prospect of better earnings abroad. Investors have bid up stocks in Japan and Asia as earnings have been better than expected in the latest quarter.

The Nikkei 225 Index in Tokyo closed lower 150.46 or 1.42% to 10,435.00 and yen gained against the dollar to 95.49.

The Bank of Japan in its monthly price report said that three indexes that track domestic, export and import prices fell sharply in July. The domestic corporate goods price index fell 8.5% from a year ago, export price index decreased 15.3% and import price index plunged 33%.

The sharp declines suggest excess capacity and falling demand.

Gainers & Losers

Automakers and trading companies decreased after a fall in commodities prices in Asian trading.

Mitsui decreased 3.7% to 1,250 yen and Mitsubishi Corp slid 2.6% to 1,922 yen.

Honda declined 2.6% to 3,040 yen and Toyota Motor Corp decreased 2.4% to 4,030 yen. Hino Motors led the decliners in Nikkei 200 index with a loss of 5.2% to 349 yen and Isuzu motors Ltd decreased 4.9% to 176 yen.

Toppan Printing declined 3.4% to 920 yen after it reported first quarter sales declined 14% and operating profit fell 80%.

Rising yen dragged exporters lower.

NEC Corp declined 4.4% to 329 yen, Konica Minolta decreased 4.3% and Sharp Corp fell 3.8% to 1,072 yen.

Nikkei 200 Average Movers

Credit Saison Co, Ltd led the decliners in the Nikkei 225 index of 5.6% followed by losses in Hino Motors Ltd of 5.1%, in Isuzu Motors Ltd of 4.8%, in NEC Corp of 4.3% and in JTEKT Corp of 4.3%.

Yokogawa Electric Corp led gainers in the Nikkei 225 index with a rise of 4.3% followed by gains in Maruha Nichiro Holdings Inc of 3.4%, in Mitsui Chemicals Inc of 3.2% and Tokyu Land Corp of 2.5%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 150.46 or 1.42% to 10,435.00, Hang Seng index in Hong Kong decreased 638.97 or 3.03% to 20,435.24 and CSI 300 index in China lower 158.98 or 4.47% to 3,397.40. ASX 200 index in Australia increased 11.10 or 0.26% to 4,343.10. The FTSE Bursa KL Composite index in Malaysia closed lower 5.74 or 0.48% to 1,180.54.

The Kospi Index in South Korea decreased 13.86 or 0.88% to close at 1,565.35 JSE Index in Indonesia decreased 51.92 or 2.16% to 2,347.36. The Sensex index in India decreased 54.43 or 0.36% to 15,020.16. The Thailand Market was closed today.