The Tokyo equities markets were down on Wednesday after it was revealed that North Korea had test fired several missiles, but declines were moderate. Some analysts attributed the muted reaction to the tests to the relative strength of the markets, especially after Monday’s strong Tankan report and low unemployment figures from last week. The Nikkei 225 dropped 0.7 percent to 15,523.94 and the Topix index was down 0.8 percent to 1,589.97.
Japan Airlines had losses early in the day as investors feared that an uncertain political situation would make people afraid to fly, but by the end of the day JAL had gained back the losses to close even at ¥277.
The electronics sector saw declines based on fears of what the Korea situation would do to the global economy. Sony dropped 0.8 percent to ¥5,060, while Sharp lost 1.5 percent to ¥1,809 and Matsushita Electric Industrial was down 1.7 percent to ¥2,360.
Automobile manufacturers felt the brunt of investor nervousness more strongly. Toyota fell 1.2 percent to ¥5,940, while Nissan dropped 1.9 percent to ¥1,239 and Honda was down 2.2 percent to ¥3,600.
Companies that have defense-related manufacturing among their interests saw substantial gains. Howa Machinery, which makes firearms in addition to industrial machinery, gained 6.3 percent to ¥204, while Ishikawa Seisakusho, which makes defense equipment in addition to textile machinery, added 17.2 percent to ¥204. However Mitsubishi Heavy Industries, Japan’s biggest manufacturer of defense equipment, was up by only 0.4 percent to ¥496.