Japan Exporters Fall as Yen Rises; JAL Soars

Mayank Mehta
14 Sep, 2009
New York City

Stocks in Japan fell as investors worried that the sharp rise in market multiples ahead of sustained economic recovery has lifted stocks to unsustainable highs. Exporters fell after the yen rose to a seven-month high. JAL may strike a deal with Delta or American Airlines to avert bankruptcy.

[R]8:00 AM New York – Stocks in Japan fell as investors worried that a sharp rise in market multiples ahead of sustained recovery has lifted stocks to unsustainable highs. Exporters fell after the yen rose to a high last seen in February. Japan Airlines may strike a deal with Delta or American Airlines to avert bankruptcy.[/R]

The Nikkei 225 Index in Tokyo closed lower 242.27 or 2.32% to 10,202.06 and the yen advanced to a high last seen seven months ago. Yen closed at 90.94 to a dollar but rose as high as 90.24 in the morning session and closed at 132.96 against one euro.

Gainers & Losers

Exporters fell after yen advanced to the highest since February of this year.

Cannon decreased 3.4% to 3,450 yen, Casio declined 4.5% to 829 yen and Citizens Holdings fell 4.4% to 532 yen. Sony Corp fell 2.4% to 2,425 yen.

Hino Motors Ltd declined 6% to 342 yen, Honda Motors Ltd fell 3% to 2,780 yen and Isuzu Motors decreased 3% to 194 yen. Toyota Motor decreased 2.6% to 3,740 yen and Suzuki Motor fell 2.4% to 2,080 yen.

Japan Airlines surged 8% to 176 yen after Delta and American Airlines showed interest in acquiring a stake in the troubled airline. According to local media reports in Japan, Delta and American are looking to acquire between 7% and 12% stake in the company below the government maximum limit of 33% stake by a foreign investor.

Banks and real estate companies fell after Nobel Laureate Joseph Stiglitz said in a Bloomberg Television interview that U.S. banking problems are not solved. The problem banks have grown bigger and too-big-to-fail systemic risk has grown since the crisis began in 2007.

Mizuho decreased 2% to 200 yen and Mitsubishi UFJ Financial Group dropped 1.7% to 537 yen.

Nikkei 200 Average Movers

JTEKT Corp led the decliners in the Nikkei 225 index of 6.1% followed by losses in Taiyo Yuden Co Ltd of 6.0%, in Hino Motors Ltd of 6.0%, in Pioneer Corp of 5.8% and in Fuji Heavy Industries Ltd of 5.5%.

Japan Airlines Corp led gainers in the Nikkei 225 index with a rise of 7.9% followed by gains in Denki Kagaku Kogyo K K of 3.2%, in Mitsubishi Rayon Co Ltd of 2.8% and in West Japan Railway Co of 1.8%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 242.27 or 2.32% to 10,202.06, Hang Seng index in Hong Kong decreased 229.22 or 1.08% to 20,932.20 and CSI 300 index in China higher 55.26 or 1.71% to 3,293.39. ASX 200 index in Australia decreased 65.00 or 1.41% to 4,531.10. The FTSE Bursa KL Composite index in Malaysia closed lower 4.92 or 0.41% to 1,203.36.

The Kospi Index in South Korea decreased 16.79 or 1.02% to close at 1,634.91. SET index in Thailand closed lower 13.49 or 1.91% to 694.32 and JSE Index in Indonesia decreased 33.24 or 1.38% to 2,382.70. The Sensex index in India decreased 50.11 or 0.31% to 16,214.19.