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Market Update

Nikkei Trims November Gain to 3.5%, Japanese Auto Production Decline Extends

Author: Hiruki Nakamura
Last Update: 12:12 PM ET November 30 2015

4:30 PM Tokyo – Nikkei average in Tokyo slipped on the growing speculation that China may allow the yuan to depreciate soon. Domestic industrial output edged up in October, retail sales rose and automobile production declined for the sixteenth month in a row.

Nikkei average in Tokyo closed down and trimmed monthly gain to 3.5% and in trading today drug-makers, shippers and insurers led the decliners.

On the economic front, the housing starts in October declined for the first time in eight months to 2.5% compared to 2.6% jump in the previous month, the Ministry of Land, Infrastructure, Transport and Tourism said.

The seasonally adjusted preliminary industrial output in October rose 1.4%, second monthly gain in a row after increasing 1.1% in September, the Ministry of Economy, Trade and Industry said.

Separately, the ministry reported total value of retail sales in October jumped 1.8% following the 0.1% decline in previous month.

On a seasonally adjusted basis, retail sales gained 1.1% followed by 0.8% increase in September.

Automobile production in October decreased 0.5% to 813,110 units and production declined for the 16th consecutive month in a row when compared to the previous year month, Japan Automobile Manufacturers Association said today.

Automobile export in the month jumped 3.8% to 416,472 units but decreased from the same month a year ago.

Domestic passenger cars sales in October declined 4% to 315,192 units and truck sales in the month slumped 5% to 63,875 units.

The Nikkei 225 Stock Average slipped 136.47 or 0.7% to 19,747.47 and the broader Topix index decreased 14.20 to 1,580.25.

For the month, Nikkei 225 soared 3.5%.

The yen weakened to 122.74 against a dollar.

Stocks in Review

Ichigo Hotel REIT Investment Corp jumped 3% to 109,200 yen after the real estate developer today completed the acquisition of nine properties in Kyoto, Nagoya Osaka and Kobe prefectures worth about 20.4 billion yen.

The company forecasted revenues in the first-half of fiscal 2016 of about 701 million yen and net profit of about 323 million yen.

Outsourcing Inc declined 3.2% to 3,200 yen after the business services provider agreed to acquire 51% stake worth about 759 million yen in Chile-based Exproservicios S.A, Est Exprotempo S.A, Exprochile S.A, Exproservicios a group companies from Grupo Expro.

Mitsubishi Heavy Industries Ltd fell 1.2% to 630.10 yen after the diversified manufacturer estimated revenue from aircraft components division to jump “more than expected” and record operating profit for the third year in a row.

Nippon Paper Industries Co., Ltd slipped 1.6% to 1,982 yen after the paper manufacturer plans to build a factory to produce nano-fiber by next year.

The cellulose nano-fiber is five times stronger than steel and weighs one-fifth the metal.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc