6:00 PM New York – Bank of Japan is scheduled to announce its rate decision and the direction of its bond purchase and direct lending programs. Sony Financial surged 14% after it tightened its portfolio guidelines. Honda Motor recalled 412,000 vehicles in the U.S.

Japan market averages fell on investor jitters ahead of the rate decision and bond purchase program announcement from the Bank of Japan this afternoon.

Governor Masaaki Shirakawa is scheduled to hold press conference at 3:30 pm in Tokyo.

Exporters also declined as the yen appreciated to as high as 90.04 against the dollar from 90.60 yesterday.

In Tokyo trading Nikkei 225 Stock Average decreased 0.3% or 30.27 to 10,721.71, and the broader Topix Index decreased 0.1% to 938.10.

In the first section of the Tokyo Stock Exchange 8.4 billion shares worth 501 billion yen were traded and in the second section 255 million shares valued at 2.3 billion yen changed hands.

Of the Nikkei 225 index stocks, 69 rose, 124 fell, and 32 were unchanged. T&D Holdings led gainers in the index shares with a rise of 3.7% followed by Obayashi Corp. advancing 2.9%.

Toyota to Pay $250 million to Nummi Workers

Nikkei News reported that Toyota Motor Corp will pay $250 million to the salaried workers and hourly employees at its California assembly plant New United Manufacturing Inc that is scheduled to be closed at the end of the month.

Nummi is a joint venture project between Toyota and General Motors Co and employs about 4,600 people.

However, the funding is subject to ongoing negotiations between Nummi and the United Auto Workers union, which represents the hourly employees. Toyota decided in August to end its production contract with Nummi as of April 1.

After the closure, production of the Corolla will move to Canada and Japan, while production of the Tacoma will move to Toyota''s San Antonio, Texas, truck plant.

Aozora Bank, Tsukuba Bank to Tie-Up

Aozora Bank and Tsukuda bank said today they have agreed to form a strategic partnership, including a capital agreement by May.

Aozora Bank intends to expand sales of its financial products to individuals and access capital markets and Tsukuba Bank seeks to strengthen its capital base.

Before the partnership, Tsukuba Bank will issue 5 billion yen of unsecured subordinated bonds, convertible to preferred shares on March 31 and Aozora Bank will underwrite the issuance in full.

In addition, the agreement calls for Tsukuba Bank to take applications for Aozora Bank structured deposits at a number of its outlets with a target date of May.

Nikkei Movers

Sumco Corporation led the decliners in the Nikkei 225 Stock Average with a loss of 3.9% followed by losses in Denki Kagaku Kogyo Kabushiki Kaisha of 3.7%, in Nippon Light Metal Company, Ltd of 3.0%, in Tokai Carbon Co Ltd 2.8% and in Pioneer Corp 2.4%.

T&D Holdings, Inc led gainers in the Nikkei 225 Stock Average with a rise of 3.6% followed by gains in 4.8%, in Obayashi Corp of 2.8% and in Nikon Corporation 2.7%.

Other Movers

Honda Motor Corp recalled 411,000 vehicles in the U.S. to fix the soft pedal issue on different models including 68,000 Element Wagons and 344,000 Odysseys from the 2007 and 2008 years. The automaker wants to replace “Vehicle Stability Assist modulator.”

Hoya Corporation the maker of eyeglass lenses rose 0.3% to 2,435.00 yen.