Wednesday, October 21, 2009

Nikkei Falls 1.2 Pct As Stocks Hit Across The Board

. Wednesday, October 21, 2009

By stockOzone team

Kyocera slipped 1.5 percent to 8,010 yen, while Advantest Corp (6857.T) fell 1.7 percent to 2,365 yen and Tokyo Electron Ltd (8035.T) shed 0.9 percent to 5,630 yen.

Banking stocks fell, with Japan's top lender Mitsubishi UFJ Financial Group (8306.T) skidding 3.1 percent to 472 yen.

JAL shares fell 2.4 percent to 123 yen. The Yomiuri newspaper said the struggling carrier plans to book hefty restructuring charges, which would likely lead to a bigger loss.

The Nikkei business daily also reported that a government-appointed task force crafting a revival plan for JAL has asked the Development Bank of Japan to provide more than 50 billion yen ($550 million) in debt waivers and debt-for-equity swaps.

KDDI fell 3 percent to 489,000 yen after Citigroup Global Markets Japan cut its rating on Japan's No. 2 phone operator to "hold/medium risk" from "buy/medium risk" and lowered its target price to 550,000 yen from 650,000 yen.

Analyst Hiroshi Yamashina said he saw little in the way of share price catalysts.

But retailer Uny (8270.T) gained 2.3 percent to 669 yen after the company said trading house Itochu (8001.T) is planning to take a stake in it as part of a business tie-up.

The Nikkei business daily said Itochu plans to spend about 4 billion yen to acquire a 3 percent stake from the market. Uny said it plans a news conference later in the day.

Some 982 million shares changed hands on the Tokyo exchange's first section, roughly in line with last week's morning average of 956 million.

Declining stocks outnumbered advancing ones by more than 6 to 1.

Disclosure: Author does not own any of the stocks discussed here.

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