Yen Strength Worries Japan Investors

123jump.com Staff
17 Nov, 2009
New York City

The services demand falls 0.5% in September. Tokyo condo prices drop 0.2% in October. Stocks in Tokyo struggle after the dollar dropped below 89 yen. Electronics exporters, shippers and automakers were on the decline.

[R]5:00AM New York, 7:00PM Tokyo - Japan’s demand for services fall 0.5% in September. Tokyo condo prices drop 0.2% in October. Stocks in Tokyo struggle after the dollar dropped below 89 yen.[/R]

The benchmark stock index fell 0.6% in Japan as the U.S. dollar dropped to as low as 88.76 against the yen yesterday.

Investors were also unnerved after services demand in Tokyo fell in September.

In Tokyo trading Nikkei 225 Index fell 0.6% or 61.25 to 9.729.93, and the broader Topix Index declined 0.4% to 857.00.

In the first section of the Tokyo Stock Exchange 19.1 billion shares worth 1.2 trillion yen were traded and in the second section 633 million shares valued at 7.8 billion yen changed hands.

Of the Nikkei 225 index stocks, 60 rose, 158 dropped, and 7 were unchanged. Japan Tobacco led gainers in the index shares with a rise of 4.6% followed by Canon Inc gaining 3%.

Demand for Services Declines 0.5%

Japan’s Ministry of Economy Trade and Industry reported today the indices of tertiary industry activity fell 0.5% to 96.4 in seasonally adjusted terms in September.

Industries that contributed to the drop were information and communications 4.4%; finance and insurance 2.8%; wholesale and retail trade 0.2%; medical, healthcare and welfare 0.4%.

Industries that contributed to the increase were transport and postal activities 1.9%; scientific research, professional and technical services 2.9%; accommodations, eating and drinking services 1.8%, living-related and personal services 1.1% and amusements services and miscellaneous services 0.8%.

Tokyo Condo Rents Fall 0.2% in October

Nikkei News reported Tokyo Kantei Co. said today the country’s condominium rents in Tokyo and three prefectures in the metropolitan area declined 0.2% to 2,607 yen per square meter in October.

Rents dropped 0.2% on the month in Tokyo to 3,115 yen per square meter last month, Kanagawa Prefecture fell 0.5% to 2,068 yen, Saitama Prefecture plunged 2.5% fall to 1,550 yen per square meter and Chiba Prefecture tumbled 5% to 1,545 yen from the previous month.

“In the western Kinki region, including Osaka and five other prefectures, October condo rents inched up 0.8% but only to 1,590 yen per square meter. In the central area including Aichi Prefecture and two more prefectures, the figure climbed 0.4% month on month to 1,571 yen in October, still hovering at low levels despite being the first rise in six months through September,” noted the report.

Gainers & Losers

Japan Tobacco led gainers in the Nikkei 225 index shares with a rise of 4.6% followed by increases in Canon Inc of 3%, in Heiwa Real Estate of 2.8%, in West Japan Railway of 2.7%, and Nichirei Corp. of 2.2%.

Realty stocks also gained. Mitsubishi Estate edged up 2% to 27 yen, Mitsui Fudosan advanced 1.8% to 26 yen.

Shipping lines rose. Kawasaki Kisen rose 2.1% to 295 yen and Mitsui OSK Lines jumped 1.5% to 538 yen.

Furukawa led decliners in the Nikkei 225 index shares with a fall of 10.5% followed by losses in Fuji Electric House of 7.2%, in Hitachi Zosen of 6.2%, in Konica Minolta of 5.3%, and Taiheiyo Cement of 5%.