Japanese stocks were in the spotlight Monday, with indexes dipping in and out of negative territory.
Tokyo’s Nikkei 225 Index closed down 63.11 points 0.8% at 7,682.14. Japan was among the few markets open for business Monday, as other centres in the region were observing the Lunar New Year. It is the Year of the Ox, and many are praying for healing for markets that are hurting.
China and Taiwan will be closed through the week and will resume trade on Feb. 2.
Nissan Motor Co., Japan’s third-largest automaker, may report an operating loss of as much as 200 billion yen this year, the Nikkei said. Company’s president Carlos Ghosn said it will take seven years for global car sales to recover to peak levels, according to the newspaper. The shares dropped 3.2%.
Pacific Holdings Co. plunged 17% after the real estate-asset manager delayed its earnings release. Komatsu Ltd., the world’s No. 2 maker of construction equipment, sank 4.7% after cutting its forecast on slumping demand in emerging markets. Mitsui O.S.K. Lines Ltd., Japan’s No. 2 bulk shipper, jumped 3.8% after freight rates for commodities rose. Tongkah Harbour Pcl, a Thai gold miner, jumped 3.9%
Consumer lenders slumped for a second day after Japan’s Supreme Court extended the period of time during which loans are subject to interest-payment refunds. Promise Co., Japan’s No. 2 consumer lender, lost 6.9%. Acom Co. retreated 5.4%
Ono Pharmaceutical Co. led drugmakers higher on speculation mergers in the industry will increase after Pfizer Inc. was said to bid $68 billion bid for Wyeth. Boards for Pfizer and Wyeth, both based in the U.S., met yesterday to consider the bid according to people familiar with the talks.
Ono jumped 4.5%. Chugai Pharmaceutical Co., the Japanese unit of Roche Holding AG, added 2.2% and Santen Pharmaceutical Co. leapt 4.9%
Elpida Memory Inc., Japan’s largest computer-memory maker, surged 6.4% after German rival Qimonda AG filed for insolvency, easing competition amid a glut.
In currency trading, the dollar bought 89.09 yen, up from 88.80 yen in Friday's late North American trading. The yen has recently traded near 13-year highs, weighing heavily on exporters. A stronger currency erodes the value of repatriated overseas profits, and makes exported goods more expensive and less appealing in overseas markets.
Elsewhere:
Shanghai. Taiwan, Singapore, Korea and Australia all had the day off to gather themselves
New Zealand shares were ahead 0.66 points, or 0.2%, to 2,705.75
