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03/10/10

Japanese Shares Slip on Lower Shipping Rates, Deflation Concern (E)

Japanese shares...
Category: Index News
Posted by: aline
Japanese shares fell after a gauge of commodity-transport fees dropped and a central bank report stoked concern deflation will hurt company earnings. Kawasaki Kisen Kaisha Ltd., Japan’s third-biggest shipping line, lost 2.3 percent. Softbank Corp., the nation’s No. 3 mobile-phone carrier, fell 1.6 percent. Casio Computer Co., the world’s biggest maker of calculators, climbed 3.4 percent after a newspaper reported it will swing to profit. Nisshin Steel Co. surged 6.9 percent ahead of its inclusion in the Nikkei 225 Stock Average.

The yen traded at 90.07 per dollar today. Canon Inc. bases its 2010 forecast on the assumption the yen will average 90 this year. Sony Corp. expects the currency to trade at 90 in the quarter to March 31. A stronger yen reduces the value of overseas sales at Japanese companies when converted into their local currency. Kawasaki Kisen, Japan’s No. 3 shipping line, dropped 2.3 percent to 347 yen, and bigger rival Mitsui O.S.K. Lines Ltd. lost 1.3 percent to 609 yen. The Baltic Dry Index, a measure of shipping costs for commodities, lost 1.5 percent yesterday, its first drop in nine days.

Japan’s producer prices, the costs companies pay for energy and unfinished goods, dropped 1.5 percent year-on-year in February, the 14th month of declines, the Bank of Japan said today. Casio jumped 3.4 percent to 721 yen, extending its gains to a fourth day. The company may post 20 billion yen ($222 million) in operating profit next fiscal year, compared with a loss in the 12 months to March, the Nikkei reported, citing President Kazuo Kashio.