Tokyo

Asia Stocks Fall as Crisis in Europe and US Heightens

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As the euro falls further against the dollar, Asian stocks slip as well. Mounting concerns of a new United States recession and the debt crisis in Europe have resulted in investors selling riskier assets.

Employment data in the US last week revealed that no jobs were created last month, for the first time in nearly a year.

“Even if you take out the effect from the Verizon strike, it is still a lousy number and people are concerned that growth is not there anymore,” Dominic Schnider of Singapore’s UBS Wealth Management said.

In the meantime, Europe now faces numerous political and legal trials which can have a damaging effect on the country’s already struggling economy.

“In this atmosphere, foreign investors are likely to remain risk-adverse and inactive,” explained Mitsushige Akino of Ichiyoshi Investment Management in Tokyo.

Tokyo’s Nikkei share average .N225 dropped 2%, and MSCI’s broadcast index of Asia Pacific shares beyond Japan .MIAPJ0000PUS dropped 2.6%, leaving it more than 17% below April’s high. The sectors hit the hardest were energy and materials.

Japan Aeroforge Ltd. Investments

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The new Tokyo-based company Japan Aeroforge Ltd. That will be creating nickel and titanium products for airplanes is going to be investing approximately 20 billion yen in order to build a plan in Kurashiki, Okayama.  What this will mean is that any procedure needed to complete the building of titanium aircraft parts will be able to be undertaken in Japan.  The company will be receiving capital from Marubeni-Itochu Steel and Sojitz Aerospace Corp. for this venture.  It is expected the plant will be completed in March 2012.

 

Tokyo’s Investments Today

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Good news has just been reported for Tokyo this year is the doubling of investment in large Japanese blue-chip companies.  Indeed combined stakes are now worth more than 1.6 trillion yen (which translates to $US19.4 billion).  The stakes do seem somewhat passive (investors remaining tight-lipped on corporate strategy and management).  But the stakes also show the escalating monetary ties between China and Japan as well as China’s increasing financial status.  This is simultaneous to the eclipsing of the Chinese economy and the Japanese economy’s rise in status to second in the world. 
During the second and third quarter of 2010, SSBT OD05 Omnibus Account Treaty Clients (a shareholder) made it to the top 10 shareholder registry of major Japanese companies (Toshiba is also on the list).  Six months prior to this, this was not the case; the shareholder made a significant jump during 2010.
 

Wall Street News

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Stock markets and oil prices in Asia recently saw an increase, indicating the demand for the latter could be improving.  As well, makers of electronics increased between 0.9 and 2.8 percent in Tokyo.  IN Hong Kong the Hang Seng index rose 0.4 percent but South Korea’s Kospi index was “nearly flat.”  While Australia’s S&P/ASX200 slightly increased, BHP Billiton Ltd. Saw a hit of 1.8 percent which was a marked difference from the company’s claim of over 70 percent net profit increase from last July to December.  The Dow Jones industrial average encountered its second straight day of losses on Tuesday with the Dow falling 0.3 percent.  Nasdaq fell 0.5 percent as did Standard & Poor’s 500 index which dropped 0.3 percent.  On the New York Mercantile Exchange delivery increased 35 cents a barrel in electronic trading.
 

Nikkei Falls 0.84 % Due To Geopolitical Tension And Eurozone fears!

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Tokyo stocks fell on Wednesday and the Nikkei stock index lost 0.84 percent, as tensions arose over geopolitical strife over conflagrations in Korean and the instability of the eurozone after Ireland’s debt-rating cut stressed investor feelings.

Standard & Poor’s downgrading of Ireland’s long-term debt caused fear of a domino effect in the eurozone and lowered investor confidence.
Adding to investor uneasiness are increasing tensions in Korean after artillery exchanges between the Republic of Korea (ROK) and the Democratic People’s Republic of Korea (DPRK).

Japan’s nearness to the conflagrations lead to share dumping in the Japanese market, according to some analysts.

Tokyo Electron fell 2.1 %, down to 5,150 yen. Mitsubishi Corp. lost 1.4 percent to 2,115 yen. Mitsui & Co. dropped 0.8 percent to 1, 330 yen.