Toyota Motor Corp., which gets more than 75 percent of revenue abroad, declined 1.4 percent, the biggest drag on the Topix index. Bridgestone Corp. tumbled 3.3 percent as higher crude prices threatened to increase costs for tiremakers. Japan Airlines Ltd. slumped 5.2 percent. Inpex Corp., Japan’s biggest oil explorer, jumped 6.9 percent.
The Topix fell 1.2 percent to 1,392.39 at the close in Tokyo, with all but five of its 33 industry groups retreating. The Nikkei 225 Stock Average lost 1.3 percent to 17,335.85. Crude extended gains after jumping 2.8 percent yesterday. The yen strengthened 0.5 percent to 117.03 per dollar today after the Reserve Bank of Australia cut interest rates.
putting a damper on stock markets,” said Tomoichiro Kubota, a senior market analyst at Matsui Securities Co. in Tokyo.
The RBA cut its benchmark interest rate by 25 basis points to a new record low of 2.25 percent, joining a dozen global counterparts in easing policy this year. The yen gained 2.4 percent against the Australia dollar after the decision, the most in 20 months.
Toyota fell 1.4 percent to 7,550 yen, while Honda Motor Co. slumped 2.9 percent to 3,593.5 yen. Canon Inc., which gets more than 80 percent of revenue abroad, dropped 1.2 percent to 3,669.5 yen.
Oil extended its rebound after plunging to an almost six-year low last week. Shutdowns of U.S. rigs and a strike by workers at refineries strained supplies, sending prices higher. West Texas Intermediate crude rose 0.9 percent to $49.99.
Oil Stocks
Energy shares advanced, with Inpex rising 6.9 percent to 1,381.5 yen, while oil-services provider JGC Corp. jumped 4.5 percent to 2,476.5 yen. JX Holdings Inc. gained 3.2 percent to 452.2 yen.Bridgestone dropped 3.3 percent to 4,480.5 yen, while Toyo Tire & Rubber Co. fell 4.4 percent to 2,592 yen on higher material costs. Japan Airlines tumbled 5.2 percent to 3,720 yen, and ANA Holdings Inc. retreated 1.6 percent to 315.5 yen. Shipping line Nippon Yusen KK slumped 4.6 percent to 332 yen.
Panasonic Corp. gained 0.7 percent to 1,357.5 yen after announcing it stopped television manufacturing in China and will liquidate the unit. Japanese makers have struggled to turn around their TV businesses, with Toshiba Corp. and Sharp Corp. announcing last week they will cut production.
Earnings Season
Panasonic will post results today after the close of trading. Among others reporting after the close are Mitsubishi UFJ Financial Group Inc., drugmaker Terumo Corp. and bearing manufacturer Minebea Co., last year’s best-performing stock in the Nikkei 225 index.“Earnings this quarter should benefit from the weaker yen, and next quarter should benefit from the weaker oil,” said Toshihiko Matsuno, chief strategist at SMBC Friend Securities Co. in Tokyo. “We’re also seeing some easing of worries over a slowdown in economic growth and less risk of defaults or credit downgrades of countries and companies.”
Greece retreated from its call on the euro area to write down its debt, and instead proposed to exchange existing borrowings for new bonds linked to the country’s growth.
Speaking to about 100 financiers in London late on Monday, Finance Minister Yanis Varoufakis outlined plans to swap some Greek debt owned by the European Central Bank and the European Financial Stability Fund for the new securities, according to a person who attended the meeting and asked not to be identified because they weren’t authorized to speak publicly.
U.S. factories expanded in January at the weakest pace in a year as orders cooled, a sign weakness in overseas markets is restraining American manufacturing. U.S. household purchases declined 0.3 percent in December, the biggest drop since September 2009, as consumers took a breather following a surge in buying over the previous two months.
Futures on the Standard & Poor’s 500 Index fell 0.4 percent after the underlying gauge gained 1.3 percent Monday in New York, recovering from the worst month in a year.
No comments:
Post a Comment