Tokyo markets down on developer declines

Tokyo’s equities markets were lower again on Friday after property developers lowered profits forecasts and as the yen strengthened yet again. The Nikkei 225 was 1.54 percent lower to 12,241.6 while the Topix index fell 1.86 percent to 1,193.23 and the Mothers market of small and mid-caps dropped 3.53 percent to 581.75. The real estate sector and property developers were lower, while brokers fell on fears that more mortgage bond funds could go the way of the Carlyle Group fund that had to default after margin calls. Carmakers were down in the 4 percent to 5 percent range. Shippers also declined. The oil sector saw gains on crude oil prices.

Other markets in the Asia-Pacific region were mixed as concerns continued that the US dollar will continue its downward spiral and that credit-market losses will continue to grow despite a forecast yesterday from Standard and Poor’s. Gainers included the Straits Times Index, which added 1.19 percent to 2,839.01. In Australia the S&P/ASX200 was up 1.38 percent to 5,206.9 and the Sydney Ordinaries gained 1.4 percent to 5,288.5. The Sensex was 2.63 percent higher to 15,760.52. Declines came for the Shanghai Composite, which was down 0.22 percent to 3,962.67. The Hang Seng was 0.29 percent lower to 22,237.11 while the Taixe fell 0.6 percent to 8,161.39 and the Kospi index dropped 0.95 percent to 1,600.26.

European markets were lower on worries that a needed rescue of Bear Stearns (NYSE: BSC) due to serious liquidity problems meant that credit losses are nowhere near an end. The FTSE Eurofirst 300 was 0.95 percent lower to 1,256.37. The IBEX was down 0.4 percent to 13,021.4 while the Dax fell 0.75 percent to 6,451.9 and the CAC-40 dropped 0.82 percent to 4,592.15. Steel producers, builders, airlines, the aerospace sector and industrial gases groups saw gains, but banks, insurers, the telecommunications sector, and chipmakers were lower.

London’s equities markets were also down, with the FTSE 100 down 1.07 percent to 5,631.7 and the FTSE 250 dropped 0.97 percent to 9,706.1. The pharmaceuticals sector was higher on bids news and miners were mixed, but most other sectors were predominantly lower. There were losses among food retailers on broker downgrades in the sector as the rest of the retail sector also saw declines. Banks, insurers and the food and beverage sector were also lower.

Wall Street was lower in early afternoon trade after early gains on a Labor Department report that the Consumer Price Index was flat in February. The Dow Jones Industrial Average was down 1.86 percent to 11,920.07, down 225.67 points after having fallen more than 300 points after the announcement of the Bear Stearns bailout. The Nasdaq Composite was 2.38 percent lower to 2,209.82 while the S&P 500 dropped 2.28 percent to 1,285.5. House builders were lower on credit concerns and on the news that several joint ventures in the sector are not doing well and may result in writedowns for the builders involved. The oil sector was lower on market declines and on oil prices that had fallen slightly. On the other hand, clothing retailers catering to teens saw gains on good quarterly reports.

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