Reply #11: Japanese Stocks Fall as Yen Strengthens, Factory Output Drops [View All]

[Ghost Dog]

Feb. 28 (Bloomberg) -- Japanese stocks fell for a second time this week, led by automakers and electronics companies, after manufacturers forecast factory production will slow and the yen strengthened against the dollar.

Honda Motor Co., Japan's second-largest carmaker, broke a three-day winning streak, while Mazda Motor Corp. fell the most in three weeks. Sony Corp., the world's second-largest maker of consumer electronics, posted the biggest drop since Feb. 6.

Companies expect factory output to fall 2.9 percent this month from January, worse than previously forecast, the Trade Ministry said today. The yen rose to the highest in three weeks after Federal Reserve Chairman Ben S. Bernanke signaled the U.S. central bank may cut interest rates again.

The Nikkei 225 Stock Average declined 105.79, or 0.8 percent, to close at 13,925.51 in Tokyo, while the broader Topix index fell 11.42, or 0.8 percent, to 1,353.10. The trading value and volume on the bourse's first section were the lowest for a full- trading day so far this year.

``The bigger-than-expected decline in industrial production makes the outlook even more uncertain for Japanese companies,'' said Naoki Fujiwara, chief fund manager at Shinkin Asset Management Co., which manages the equivalent of $5.1 billion. ``Automakers can't avoid an economic slowdown in North America, and the stronger yen may further reduce their earnings.''

Honda retreated 2.3 percent to 3,360 yen, while Mazda fell 4 percent to 461 yen. Sony, which gets three quarters of its sales from outside of Japan, slipped 1.9 percent to 5,220 yen.

Factory output dropped 2 percent last month, more than double what economists had predicted. Production of transport equipment, including cars, ships and motorcycles, fell the most in four months on a seasonally adjusted basis.

/... http://www.bloomberg.com/apps/news?pid=20601101&sid=aGoz82IF6yYs&refer=japan

Japan Production Falls 2%, Twice as Much as Predicted (Update5)

Feb. 28 (Bloomberg) -- Japan's factory production fell in January at twice the pace economists predicted as a deepening U.S. slump weakened demand for cars and electronics.

Companies cut output 2 percent from December, when it rose 1.4 percent, the Trade Ministry said today in Tokyo. The median estimate of 47 economists surveyed by Bloomberg News was for a 0.8 percent decline.

Bonds gained the most in three weeks on speculation that the drop in production signals growth in the world's second- largest economy will slow this year. Cutbacks in output have coincided with the nation's last three recessions.

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=ab5Y2r5Jthfk&refer=asia