After enjoying 2 weeks’ peak level yesterday, Nikkei lost 0.5% on Thursday due to the dampening of orders for U.S. durable goods.
Also, Panasonic Corp. went down 5.4% following the Company proposing to buy stake in Sanyo Electric Co and Panasonic Electric Works Co Ltd.
Meanwhile, shares in Sanyo jumped 25%. Nikkei reported that Panasonic is likely to pay more than 900 billion yen for purchasing the shares.
With this move, Panasonic has triggered competition for other electrical giants like Samsung Electronics Co. and Sony Corp.
“Panasonic faces fierce competition from Samsung and Sony in consumer electronics. Its rivals are not as competitive in the energy-related products”, said Yuji Fujimori, analyst at Barclays Capital.
The final decision on Panasonic’s deal will be proclaimed today.
Sanyo gained 31 yen on the Tokyo Stock Exchange, as reported at 11 a.m. Meanwhile, Panasonic lost 5.4% to 1,104 yen.
The benchmark Nikkei lost 52.85 points to 9,700.42. It jumped 2.7% to 9,753.27 on Wednesday, reaching its highest level in the last two weeks.
The benchmark S&P 500 dipped following the highest closure in the last three days.
Panasonic is expected to declare its second-quarter incomes today.