Japan Indexes Drop 2%, Chipmakers Plunge

Mayank Mehta
29 Jan, 2010
New York City

Stocks in Japan declined on the worries that earnings at chip companies will be lower. Toyota also halted sales in North America of eight models and recalled as many as 1.8 million cars in Europe. Advantest Corporation led the decliners in the Nikkei 225 Stock Average with a loss of 10.2%.

[R]9:00 PM Tokyo, Japan – Stocks in Japan declined on the worries that earnings at chip companies will be lower. Toyota also halted sales in North America of eight models and recalled as many as 1.8 million cars in Europe. Advantest Corporation led the decliners in the Nikkei 225 Stock Average with a loss of 10.2%.[/R]

Stocks in Tokyo lost ground on the worries that the weakness in the U.S. job market will affect Japan’s exports. Weekly jobless claims declined less than expected in the U.S. last week

Japan’s factory output in December increased 2.2% from the previous month according to the latest data released from the Trade Ministry.

A separate report showed that unemployment decreased to 5.1% in December from 5.2% in the previous month.

In addition household spending increased 2.1% in December from a year ago, a fifth monthly increase in a row.

The Nikkei 225 Index in Tokyo closed lower 216.25 or 2.08% to 10,198.04 and of the stocks in Nikkei 225 Stock Average, 20 increased, 199 declined and 6 was unchanged.

The Diet approved an additional budget of 7.2 trillion yen or $80 billion aimed at creating new jobs.

Nikkei Movers

Advantest Corporation led the decliners in the Nikkei 225 Stock Average with a loss of 10.2% followed by losses in Sumco Corporation of 6.5%, in Hitachi Construction Machinery Co., Ltd of 6.2%, in Meidensha Corp 6.0% and in Dentsu Inc 5.7%.

Fuji Electric Holdings Co., Ltd led gainers in the Nikkei 225 Stock Average with a rise of 8.4% followed by gains in Mazda Motor Corporation 4.7%, in Sumitomo Electric Industries, Ltd of 3.8% and in Marubeni Corporation of 1.9%.

Other Movers

Advantest Corporation plunged 10.2% to ¥2,253.00 after the maker of memory-chip testers said third quarter net loss of ¥5.67 billion compared to net loss of ¥7.76 billion a year ago.

Canon Inc decreased 3.9% to ¥3,535.00.

CyberAgent, Inc the IT Company slipped 1.1% to ¥158,000.00.

Elpida Memory Inc dropped 9% to ¥1,601 after it reported lower than expected earnings.

Fanuc increased 1.8% to ¥1,799 after it cited significant demand increase and revised its earnings projection for the year higher by 64%.

Japan Prime Realty Investment Corp the property trust rose 0.3% to ¥173,500.00.

Nintendo Co., Ltd dropped 3.8% to ¥25,300.00 on the worries that recently launched iPad from Apple may cut into future sales.

Olympus Corp the electronics maker fell 3.8% to ¥2,710.00.
Omron surged 6% to ¥1,799 after it reversed its earlier forecast of a year loss to profit in the year ending in March.

Promise Co decreased 7.5% or ¥68 to ¥836 and said yesterday that it plans to trim workforce by 1,600 and reported net income declined 29%.

Point Inc the retail company rose 0.1% to ¥5,180.00.