Japan Stocks Track Losses in New York

Darlington Musarurwa
25 Jan, 2010
New York City

Foreign visitors to Japan decline 13% to 7.81 million. Bank of Japan to extend emergency loan program. Pioneer Corp plans to raise 20 billion yen in share offering.

[R]5:00 AM New York, 7:00 PM Tokyo – Foreign visitors to Japan decline 13% to 7.81 million. Bank of Japan to extend emergency loan program. Pioneer Corp plans to raise 20 billion yen in share offering.[/R]

The benchmark stock index fell 0.7% in Japan on worries plans by the Obama administration to limit bank’s risk-taking will affect future profits at banks.

In Tokyo trading Nikkei 225 Stock Average decreased 0.7% or 77.86 to 10.512.09, and the broader Topix Index declined 0.7% to 934.59.

In the first section of the Tokyo Stock Exchange 8.9 billion shares worth 653 billion yen were traded and in the second section 358 million shares valued at 1.9 billion yen changed hands.

Of the Nikkei 225 index stocks, 53 advanced, 158 fell, and 14 were unchanged. Clarion Co. Ltd led gainers in the index shares with a rise of 12.4% followed by Nippon Light Metal climbing 7.1%.

Foreign Visitors to Japan Decline 18.7%

Nikkei News reported that the Japan National Tourism Organisation said today that the number of foreign visitors to Japan dropped 18.7% to 6.79 million people in 2009 from a year ago, the first double-digit decline since 1986.

The report notes that visits suffered on a stronger yen, the global financial crisis and the effects of the H1N1 strain.

South Korean visitors dipped 33.4% to 1.58 million, while Taiwan plunged 26.3% to 1.02 million. However, visitors from China jumped 0.6% to 1 million people.

Japan is targeting visitor arrivals to top 10 million this year.

Toyota Global Sales Fall 13% to 7.81 million

Toyota Motor Corp. said today its global vehicle sales decreased 13% to 7.81 million vehicles from 8.97 million a year ago.

Sales fell in U.S. by 20% to 1.77 million units, in Japan by 6.7% to 1.35 million units, but increased 21% to 709,000 in China.

However, December sales increased 32.8% to 636,000 units.

Pioneer to Raise 20 billion yen

Japan Today reported today that Pioneer Corp intends to raise capital through a public share offering worth 20 billion yen in March.

The money will be used for the enhancement of its car navigation system division.

The company canceled its plan to raise funds from the government sources after the recent market recovery helped it to finalize a public offering.

BoJ to Expand Emergency-Loan Program

Bloomberg News reported today that the Bank of Japan is considering expanding an emergency-loan program for banks, which currently offers funds for three months at 0.1%, and increasing purchases of government debt.

The facility could be expanded in stages and size, while the maturity of the loans might be extended to six months and subsequently to 12 months.

Nikkei Movers

Mitsui Co Ltd led the decliners in the Nikkei 225 Stock Average with a loss of 21.5% followed by losses in Kyowa Hakko Kirin Co., Ltd of 4.2%, in Mitsui Chemicals, Inc of 4.2%, in Mitsubishi Chemical Holdings Corp 3.9% and in Sumitomo Osaka Cement Co., Ltd 3.3%.

Clarion Co Ltd led gainers in the Nikkei 225 Stock Average with a rise of 12.3% followed by gains in Nippon Light Metal Company, Ltd 7.0%, in Pioneer Corp of 6.7% and in Nitto Boseki Co Ltd of 4.8%.

Other Movers

Honda Motor Co., Ltd fell 1.7% to ¥3,175.00.

KDDI Corp dropped 2.0% to ¥528,000.00 after the telecommunications company on Monday lowered its group net forecast for the full business year through March.

Kyowa Hakko Kirin Co., Ltd decreased 4.2% to ¥921.00 after the drugmaker announced that it has lowered its consolidated full-year outlook for revenue from ¥310,000 million to ¥309,100 million.

Mitsui Chemicals, Inc declined 4.2% to ¥251.00.

Mitsubishi Heavy Industries, Ltd the atomic reactor fell 1.5% to ¥328.00.

Toyota Motor Corporation fell 2.1% to ¥3,970.00 after the automaker said on Monday its global output rose 32.8% in December from a year earlier to 636,102 vehicles.