Komatsu Ltd (ADR) (KMTUY), Hitachi, Ltd. (ADR) (HTHIY): What China Means for Japan’s Industrial Giants

It’s important to point out that it’s not just China hitting leading Japanese exports, either. Hitachi, Ltd. (ADR) (OTCMKTS:HTHIY) was slammed in part because of declining fortunes in India, another of the world’s hottest emerging markets that’s dealing with problems of its own. Falling demand in Australia and Indonesia also took a bite out of Komatsu Ltd (ADR) (OTCMKTS:KMTUY)’s first-quarter earnings.

Nonetheless, China’s a critical piece for these two manufacturing leaders, as well as many other top Japanese exporters. The problems have begun to take their toll on Komatsu Ltd (ADR) (OTCMKTS:KMTUY) and Hitachi, Ltd. (ADR) (OTCMKTS:HTHIY), as the former’s stock is down nearly 15% year to date, while the latter’s shares have fallen 12% over the past three months.

The Nikkei might be riding high for the average Japanese investor, but for top exporters like Japan’s largest manufacturers, China and other high-priority economies need to lend a hand.

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Fool contributor Dan Carroll and The Motley Fool have no position in any of the stocks mentioned.

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