Tokyo markets fall

The Tokyo equities markets were down significantly on Friday as some export-dependent stocks and commodities both saw declines due to the strength of the yen and higher interest rates in China. The Nikkei 225 dropped 1.2 percent to 15,906.23, while the Topix index was down 0.8 percent to 1,716.43.

The automobile manufacturing sector was down on the day, with Honda losing 1.1 percent to ¥8,090, while Toyota - Japan’s largest carmaker - dropped 0.2 percent to ¥6,660.

Electronics companies, which also export large numbers of goods, were mixed on the day. Consumer electronics giant Sony was down 5.1 percent to ¥5,720 even though its 2005/2006 profits were reported to be higher than had been anticipated. The decline on the day was said to be due to a lower earnings forecast for the 2006/2007 fiscal year.

On the other hand, consumer electronics manufacturer Pioneer and electronics parts maker TDK both posted gains on the day. Pioneer was up 2.5 percent to ¥2,015 on smaller than expected losses for the 2005/2006 fiscal year and an outlook that predicted a return to profitability this year. Meanwhile, TDK added 2.8 percent to ¥9,530 on a strong earnings report for 2005/2006 and a prediction of further growth in 2006/2007.

The steel sector saw losses on the day amid continued concern that higher interest rates in China will cut demand. JFE dropped 1.3 percent to ¥4,420 while Nippon Steel declined by 1.2 percent to ¥420.

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