6:00 PM Tokyo – Japan lowered its assessment of economic activities in the second half and blamed it on slowing growths in China and the U.S. and overhang of debt crisis in the euro zone. However, economic growth was left unrevised for now and the latest downgrade is the first since October 2011.
Japanese government’s assessment of local economy finally began to catch up with what investors have feared for the last six weeks.
The government said weakening exports and slowing economies in China and the U.S. are adding to the global weakness as the euro zone struggles under the debt crisis.
The government lowered the economic assessment for the first time since October 2011 and cut its views on exports and industrial production for the first time since July when it estimated a recovery in exports and a modest recovery in output.
The Nikkei 225 Stock Average declined 52.10 or 0.6% to 9,033.29, the highest since July 4. The broader Topix Index slumped 9.07 or 1.2% to 746.30.
The yen gained to 78.49 against one dollar from 78.84 at close yesterday.
Stocks in Review
FamilyMart Co Ltd, the convenience chain operator increased 15 yen to 3,845 yen, Lawson closed unchanged at 6,060 yen and Seven & I Holdings Co slid 1 yen to 2,555 yen.
Honda Motor Co. declined 50 yen to 2,562 yen and Nissan Motor Co Ltd slumped 16 yen to 751 yen.
Nippon Steel decreased 6 yen to 165 yen and JFE Holdings Inc dropped 26 yen to 1,046 yen. Tokyo Steel Manufacturing slipped 3.9% to 267 yen.
Canon Inc dropped 16 yen to 2,702 yen and Seiko Epson Corp decreased 8 yen to 551 yen and Ricoh Co Ltd closed unchanged at 627 yen. Sony Corp slumped 16 yen at 903.
Panasonic Corp slipped 14 yen to 549 yen and Toshiba decreased 8 yen to 261 yen and Nikon plummeted 34 yen to 2,210 yen.
Sharp jumped 18 yen or 9.1% to 215 yen on the speculation that short sellers are facing a squeeze and speculators anticipated a bailout from Hon Hai Precision based in Taiwan.
Olympus slid 0.1% to 1,560 yen, Nintendo Co. Ltd declined 100 yen at 8,850 yen, Fujitsu decreased 2.1% to 319 yen and Pioneer Corp. slipped 6 yen to 209 yen.
Fanuc Ltd advanced 20 yen to 13,000 yen and Komatsu Ltd dropped 35 yen to 1,630 yen.
Hitachi Construction Machinery Co slumped 29 yen to 1,374 yen.
Yamada Denki plummeted 85 yen to 3,995 yen. Nitori Holdings Co decreased 20 cents to 7,730 yen, apparel retailer Shimamura slumped 80 yen to 9,190 yen and Sagami Co closed unchanged at 129 yen.
Fast Retailing Co. advanced 240 yen to 18,540 yen and J. Front Retailing Co. Ltd closed unchanged at 401 yen.
Kajima Corp slid 2 yen to 224 yen and Taisei Corp slipped 3 yen to 218 yen. Sekisui House Ltd decreased 10 yen to 740 yen and Daito Trust Construction Co Ltd slumped 30 yen to 7,660 yen.
Tokyo Tatemono Co., Ltd lowered 6 yen to 272 yen and Mitsui Fudosan dropped 28 yen to 1,489 yen and Sumitomo Realty & Development Co. declined 39 yen to 1,936 yen.
Kansai Electric Power Company, Inc plunged 66 yen or 10% to 594 yen a day after a report in Nikkei business daily said that the company is likely to trim its interim dividend for the first time in 25 years on the earnings uncertainty.
Inpex Corp slumped 2.4% to 456,000 yen and Japan Petroleum Exploration Co. plummeted 70 yen to 3,050 yen.
Mitsui O.S.K. Lines, Ltd slipped 5 yen to 201 yen and Kawasaki Kisen Kaisha, Ltd slid 1 yen to 105 yen and Nippon Yusen K.K. lowered 2 yen to 168 yen.
Aozora Bank soared 14% to 238 yen after mid-sized financial institution said it plans to spend 227.6 billion yen over a decade to return 180 billion yen of the bailout from the government and buyback stocks.
Mitsubishi UFJ Financial Group slipped 6 yen to 362 yen and Sumitomo Mitsui Financial Group dropped 29 yen to 2,469 yen. Nomura Holdings, Inc slid 9 yen to 266 yen.
Tokio Marine declined 18 yen to 1,902 yen and Mito Securities slumped 4.2% to 136 yen.
Credit Saison Co Ltd climbed 23 yen to 1,873 yen.