Nikkei index has fallen off in price

Japan's stock market suffers

In brief: Another drop in the Nikkei was inevitable, European markets reacted to the fall of the Japanese.

Nikkei is weaker, than it was supposed. Stock trading in Japan on May 11 resulted in reduction of the composite index Nikkei 1,1% influenced by news of the banking sector. Investors feared that a third of the market value of Bank of Japan’s Mizuho Financial Group Inc., Will release an additional issue of shares amounting to 1 trillion yen in order to strengthen capital.

This information came from an unofficial source and caused a decline in securities prices by 4,7%. The concern of investors was caused also a common Japanese business media information that the second market value of Japanese bank Sumitomo Mitsui Financial Group plans to double the maximum limit on issuance of securities. In this regard, the bank’s shares have fallen in price on 3,6%. For the second-largest manufacturer of construction equipment in the world Komatsu Ltd. Bidding also ended in the minus, as speculation about a possible decrease in demand for products of the company contributed to pessimism Japanese investors and turned losses of 3,4%.

Approved in Europe financial measures to prevent the debt crisis are not able to positively influence the prevailing sentiment on the stock exchange, because, according to some experts, they do not change economic forecasts for the eurozone and, indeed, significantly lower on the importance of developments in the national economy. Thus, a negative background for the auction served as the projected increase by the Central Bank of China interest rates, aimed at curbing inflation. As a result of trading the Nikkei 225 index fell 119.6 points (-1.1%) – up to 10,411.10 points. Dollar / yen fell to 0.63 yen in relation to the course before and was at the close of trading 92.66 yen to the dollar.

Ukrainian Globalist
2010-05-11 11:19, Economics.

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