Friday, March 16, 2007

Japan carmakers hurt by stronger yen

by Elaine Frei

Banks were lower in Tokyo on Friday and that, with a yen that was stronger versus the US dollar, sent equities markets lower on the session.  The Nikkei 225 dropped 0.7 percent to 16,744.15, while the Topix index fell 1 percent to 1,677.06.

The banking sector was down 2.5 percent as a whole.  Mizhuo Financial (TYO: 8411; NYSE: MFG) dropped 2.3 percent to ¥753,000, while Mitsubishi UFJ (TYO: 8306; NYSE: MTU) was 3 percent lower to ¥1,310-,000.  Banks have not seemed to be able to take advantage of higher rates to widen loan margins, as it had been expected they would do.

Automobile manufacturers, with their emphasis on exports, were hurt by the stronger yen.  Toyota Motor (TYO: 7203; NYSE: TM; LSE: TYT) was down 0.7 percent to ¥7,610 and Nissan Motor (TYO: 7201; NAS: NSANY) dropped 0.9 percent to ¥1,285.

The electronics sector did better on the session.  Electronics parts maker TDK (TYO: 6762; NYSE: TDK; LSE: TDK) added 4.8 percent to ¥9,950 on the news that it will purchase Alps Electrics (TYO: 6770), which makes hard disk drives.  Alps gained 5.3 percent to ¥1,362.

 

 

 

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