Nikkei sheds 1.4% on strong yen, weak economy

Japanese stocks fell Thursday as fresh concerns about the strong yen and mounting doubts about the country's economic recovery weighed on sentiment.
DEC 10, 2009
Japanese stocks fell Thursday as fresh concerns about the strong yen and mounting doubts about the country's economic recovery weighed on sentiment. The benchmark Nikkei 225 stock average lost 141.90 points, or 1.4 percent, to 9,862.82. The broader Topix index finished down 1.3 percent at 873.90. Trading was choppy throughout the session but turned lower in the afternoon after the yen spurted higher against the dollar and the euro. A stronger yen hurts Japanese exporters like automakers and electronics companies. Earlier in the day, the government said that machinery orders, a closely watched indicator of corporate capital spending, fell 4.5 percent in October from a month earlier. The report came a day after the Cabinet Office sliced its estimate of third quarter gross domestic product to 1.3 percent annualized growth from 4.8 percent. All automakers declined, with Toyota Motor Corp. down 1.6 percent at 3,650 yen and Honda Motor Co. losing 1.5 percent to 2,930 yen. Small-car maker Suzuki Motor Corp. plunged 6.5 percent to 2,215 yen. Volkswagen AG said Wednesday it would buy a 20 percent stake in Suzuki 222.5 billion yen ($2.5 billion), forming one of the world's biggest auto alliances. Among the few gainers, Sanyo Electric Co. surged more than 10 percent to 176 yen on high hopes for its future. Panasonic announced after market close that it had secured a majority stake in the company, as expected. In currencies, the dollar had recouped losses by late afternoon, rising to 88.23 yen from 87.88 late Wednesday. The euro fell to $1.4709 from $1.4726.

Latest News

LPL adds $600M UBS team in Tennessee
LPL adds $600M UBS team in Tennessee

The firm's latest additions, led by a second-generation financial advisor, are striking out via its Linsco employee advisor channel.

eMoney supports focused financial planning with enhanced needs analysis
eMoney supports focused financial planning with enhanced needs analysis

The Fidelity-owned fintech aims to help advisors connect with mass market and mass affluent prospects with single-goal conversations.

Trump SEC pick Paul Atkins grilled by Democrats in early political test
Trump SEC pick Paul Atkins grilled by Democrats in early political test

The prospective chair of the agency has pledged to shed conflicted interests and "return common sense to the SEC."

Finra moves to boot Alpine Securities, same firm that claims the regulator can’t
Finra moves to boot Alpine Securities, same firm that claims the regulator can’t

'If I were on the side of Alpine Securities, I’d put all my eggs in the federal court,' one attorney said.

CFP Board floats new procedural rules around bankruptcy, misdemeanors
CFP Board floats new procedural rules around bankruptcy, misdemeanors

If approved, the proposed revisions would achieve outcomes similar to the existing process while reducing the burden of oversight.

SPONSORED Retirement plan balances are flourishing. Why are so many advisors missing out on a $3 trillion opportunity?

Participants who receive professional 401(k) advice see higher returns on average, net, than those who don't.

SPONSORED Focus on clients, not compliance – why Gary Corderman found his fit with Farther

This wealth management platform finally delivers on the technology promises other firms couldn't - giving advisors a better way to scale and serve