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Declining Dollar Drags Down Japanese Stocks

by Freddie Mooche

Business Brokerage Japanese stocks fell on a weak US dollar with exporter Toyota Motor Corp leading the pack. On Friday Toyota closed down 49 cents at $77.11 in New York trading.If you would like to receive late breaking news on stocks covered by AXcess News then you need to subscribe. By joining, you can stay ahead of the pack and receive the latest news in your email in-box first.Print This Page

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Forex Broker Nov 22, 2004 (AXcess News) New York - Japanese stocks fell on a weak US dollar with exporter Toyota Motor Corp (NYSE: TM) leading the pack. On Friday Toyota closed down 49 cents at $77.11 in New York trading. The dollar was at its lowest point against the Yen since March 2000, which impacted Toyota's U.S. earnings capability.

As result of a weaker short term Dollar, the Dollar quoted commodities have become more attractive, obtaining major attention from investors, not only from Asia and the Gulf nations, which sell Dollar as it comes down, while the volatility and sensibility of stocks and bonds goes on. Especially oil (energy) and gold (metals) and other commodities, such as agricultural commodities, are used as hedge against inflation and the weakening Dollar, as rising commodity prices will offset dollar declines.

Online Brokerage On Friday, Fed chairman Alan Greenspan said to group of foreign finance ministers meeting in Germany that the U.S. deficit may cause foreign investors to sell dollar-denominated assets. Greenspan's comments sent the Dow into a nose dive, hitting a four-week low that was further fueled by oil prices jumping on cold weather warnings and possible shortages of heating oil in China and Russia.

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Real Estate Broker The Nikkei 225 Stock Average was reported to be down over 2.5% by 11am Monday in Tokyo.According to a story in Bloomberg, the broader Topix had declined 2.1% to 1086.56.Bloomberg's story said that technology and automotive stocks were poised for a correction and accounted for 25% of the Topix stocks. Both industries are large exporters to the U.S.Sony Corp (NYSE: SNE) closed down 14 cents at $36.14 on the New York Stock Exchange Friday. Advertisement

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Agency Brokerage Spark Mitsubishi Tokyo Financial Group (NYSE: MTF) was also down 22 cents at $9.38. The bank holding company operates through its two directly held subsidiary banks, Bank of Tokyo-Mitsubishi and Mitsubishi Trust Bank.Japan's plan to sell fixed-rate bonds to individual investors may also be affected by a weaker dollar. Japan had sold a record US$17.6 billion of floating-rate debt to investors in September. Japan is borrowing from individuals to help finance that nation's debt. Japan's debt is the largest among the Group of Seven industrialized nations, Canada, France, Germany, Italy, Japan, the U.K. and the U.S.

The first one is that the first currency in a pair is known as the base currency and the second basic concept is that it's value is always 1. The US Dollar is generally the base currency. JPY 110.02, which means that 1 US dollar is equal to 110.02 Japanese Yen. pretty simple, no This is the basics of online forex broker trading and from here on it only becomes simpler. Where'd you put that Bourbon Pour yourself another glass, because we're on the road to riches!

Business Broker Related News:

Brokerage Account "Japanese Economic Assessment Lowered"

Stock Broker "US Dollar Falls to Record Low Against Euro, Yen" AXcess News will be reporting on any new market trends related to this story. Members should watch their in-box for late breaking news. If you're not a member, consider joining now. Members get the latest business news, commentaries and stock picks delivered right to their in-box.

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