Drop in Japanese Stocks Exceeds Weekly Losses
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A majority of Japanese stocks incurred severe losses as they were being weighed down by trading companies and shipping lines, amidst declining commodity prices and cargo rates.
Companies, like Mitsubishi Corp. and Mitsui & Co. that get greater than one-half of their realized profit from commodities, sent trading companies grazing the bottom. Kawasaki Kisen Kaisha Ltd. after having incurred huge losses led a decline by shipping lines.
“Some investors want to reduce their holdings of commodity-related stocks as volatility increases. I expect the stock market’s nauseating gyrations to continue,” according to said Hideo Arimura, who helps oversee US$26 billion at Mizuho Asset Management Co., Tokyo.
Photo Credit: ajari
The Topix index has been swinging, six times, between opposite ends of gains and losses. This has further resulted in ending down 2.98, or about 0.2 percent, to 1,376.69. This week, there has been 1.4 percent gauge lost, trimming a two-month rally by 22 percent up to May 16. The Nikkei 225 Stock Average increased by 33.74, or 0.2 percent, and closed at 14,012.20, and incurred a 1.5 percent loss.
Crude oil fell 1.8 percent, the largest losses ever incurred since April 30, to $130.81 per barrel yesterday. Gold, on the other hand, plunged 1.1 percent from a one-month high. Copper hit bottom this week.
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