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Sunday 27th of February 2011
June 23, 2006    

Nikkei 225 drops 0.1 percent on day

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by Elaine Frei

The prospect of higher interest rates in the United States sent the Tokyo equities markets lower on Friday, but declines were limited by gains in the real estate sector. The Nikkei 225 dropped 0.1 percent to 15,124.04, while the Topix index declined by 0.2 percent to 1,545.57.

Export-focused sectors were affected by concerns about the US economy, with the automobile manufacturing and consumer electronics sectors both lower. Among carmakers, Honda dropped 1.2 percent to ¥7,280 and Toyota was down 1.4 percent to ¥5,790. Meanwhile, among electronics companies, Sanyo Electric fell 3.2 percent to ¥243 after Finnish handset maker Nokia cancelled a joint venture with Sanyo before the project had even gotten underway.

Consumer finance company Takefuji dropped 0.9 percent to ¥6,810 after news reports that a committee of Japan’s ruling party has agreed to rules on lending that will lower the maximum interest rate borrowers can be charged.

The real estate sector added 1.7 percent as a whole, helped by data showing that rents in Japan’s largest cities are going up. Mitsui Fudosan added 3.1 percent to ¥2,355.

Also defying the general trend of losses was chemicals manufacturer Showa Denko which added 6.3 percent to ¥487 after it said it was increasing its recurring profit forecast for the full year by 6.5 percent.

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