By - Jan 11, 2011 9:09 AM GMT+0800
Jan. 10 (Bloomberg) -- Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. U.S. stocks declined for a third day as a daylong advance that reversed most of a 100-point loss in the Dow Jones Industrial Average fell short of erasing all the losses spurred by concern Europe’s credit crisis may worsen. Bloomberg's Pimm Fox also speaks. (Source: Bloomberg)
Japan’s benchmark stock indexes fell for the first time in three days as concern increased that Europe’s government-debt crisis will worsen.
Canon Inc., the world’s largest camera maker, sank 1.3 percent after the euro weakened against the yen to its lowest level since September, reducing the outlook for export earnings. Sony Corp., an electronics maker that earns about 40 percent of its sales from the U.S. and Europe, declined 1.3 percent. Nippon Steel Corp., Japan’s biggest steelmaker by sales, rose 1.7 percent after Credit Suisse Group AG boosted investment ratings.
Investors “can’t help becoming cautious about the issues” in Europe, said Fumiyuki Nakanishi, a strategist at Tokyo-based SMBC Friend Securities Co.
The Nikkei 225 Stock Average fell 0.3 percent to 10,513.87 as of 10:08 a.m. in Tokyo. The broader Topix index was little changed at 925.69, with about three shares advancing for every two that declined.
The Topix retreated 10 percent from its high last year on April 15 through to Dec. 30 as Europe’s debt crisis, China’s steps to curb property prices and concern about U.S. economic growth damped confidence in a global recovery. Shares in the broader index were valued at 16 times estimated earnings on average as of the last close, the highest level since August.
European Debt Crisis
Canon, which gets about 80 percent of its revenue outside of Japan, sank 1.3 percent to 4,160 yen, and was the heaviest drag on the Topix. Sony, the maker of Cyber-shot cameras and Bravia televisions, lost 1.3 percent to 2,982 yen. Fanuc Corp., a maker of industrial robots that earns about 80 percent of revenue overseas, fell 0.8 percent to 13,000 yen, the heaviest drag on the Nikkei 225.
The yen appreciated to as high as 82.67 against the dollar yesterday in New York, the most since Jan. 5. Against the euro, Japan’s currency rose to as much as 106.83, the highest level since September. A stronger yen reduces the value of overseas income at Japanese companies when repatriated.
The cost to insure the debt of Portugal and Ireland with credit-default swaps rose to a record yesterday amid concern that funding challenges may force more euro-region countries to seek bailouts.
Mitsubishi UFJ Financial Group Inc., Japan’s biggest bank by market value, slid 0.5 percent to 442 yen and Mizuho Financial Group Inc., the No. 3, fell 1.2 percent to 161 yen. They were the most-active stocks by value in Japan.
Steelmakers Climb
Steelmakers had the second-biggest gain among the 33 industry groups in the Topix after Credit Suisse raised its industry rating to “overweight” from “market weight.”
Nippon Steel climbed 1.7 percent to 297 yen and JFE Holdings Inc., Japan’s second-largest steelmaker by sales, advanced 1.5 percent to 201 yen. Kobe Steel Ltd. jumped 3.3 percent to 219 yen, the biggest gain in the Nikkei 225.
Credit Suisse boosted its ratings on Nippon Steel and JFE to “outperform” from “neutral,” and on Kobe Steel to “neutral” from “underperform.”
Mitsubishi Materials slipped 1.1 percent to 269 yen. Sumitomo Metal Mining Co., Japan’s second-biggest copper smelter, fell 0.6 percent to 1,409 yen.
Copper futures for March delivery dropped 0.4 percent in New York yesterday, falling for the third straight session. The London Metal Exchange Index of six metals including copper and aluminum slid 1.3 percent yesterday, a fourth consecutive slump.
To contact the reporter on this story: Norie Kuboyama in Tokyo at nkuboyama@bloomberg.net.
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.
Posts
0 comments:
Post a Comment