Olympus Corp. (7733) and TDK Corp. (6762) led a decline among Japanese exporters in Tokyo trading after the yen strengthened and China cut its economic growth target.
Olympus, the Japanese camera maker trying to rebuild its image after admission of covering up losses, fell 5.5 percent to 1,256 yen, the most since Dec. 19, on the Tokyo Stock Exchange. (NKY) TDK, which makes magnetic heads for disk drives, declined 3.7 percent to 4,190 yen, the most since Dec. 15.
Japanese exporters contributed most to a 0.8 percent drop in the benchmark Nikkei 225 Stock Average, as the local currency rose against the dollar. Chinese Premier Wen Jiabao set an economic growth target of 7.5 percent for this year, the least since 2004, in a speech at the National People’s Congress in Beijing today.
“Rising yen and China outlook weaken sentiment for exporters including Olympus,” Mitsuo Shimizu, an analyst at Cosmo Securities Co. in Tokyo, said by telephone.
The Japanese yen registered the only gain against the U.S. dollar among 15 major currencies today, strengthening 0.76 percent as of 5 p.m. in Tokyo. The currency’s advance hurts the overseas competitiveness of Japanese manufacturers and reduces the value of repatriated earnings.
Olympus gets about 20 percent of sales from North America and more than 19 percent from Europe, data compiled by Bloomberg show. China accounts for about 30 percent of TDK’s sales, while the Americas and Europe make up 25 percent, according to data compiled by Bloomberg.
Sony Corp. (6758) fell 3.3 percent, the biggest drop since Nov. 16, to 1,691 yen. Sony gets about 70 percent of its sales outside of Japan, according to data compiled by Bloomberg.
The Tokyo District Public Prosecutors Office will arrest former Olympus executives including ex-chairman Tsuyoshi Kikukawa for misrepresentation of the company’s securities report, the Mainichi newspaper reported March 4, without saying where it obtained the information.
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