Tokyo Market News: investment market news from the Nikkei and Topix indices
Tokyo Market News: investment market news from the Nikkei and Topix indices

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    June 30, 2006

    Banks, real estate higher in Tokyo

    Filed under: Companies, Takashimaya, Mitsui Fudosan, Toyota, Advantest, Tokyo Electron, Nissan, Komatsu, Tokyo Tatemono, Mazda, Daiwa House, Fanuc, Chiba Bank, Bank of Yokohama, Mitsui Trust

    The Tokyo equities markets were up strongly on Friday after Thursday’s gains on Wall Street in the wake of another hike in US interest rates by the Federal Reserve. The Nikkei 225 and the Topix index each added 2.5 percent on the day to 15,505.18 and 1,586.96 respectively. Export-focused stocks were helped by expectations of higher demand in the United States, while domestic stocks also saw advances.

    In the electronics sector, Advantest and Tokyo Electron each added 2.8 percent, to ¥11,660 and ¥8,000 respectively..

    Construction machinery maker Komatsu gained 3.4 percent to ¥2,340. Industrial robot maker Fanuc was up 3.2 percent to ¥10,280.

    Automobile manufacturers also saw gains. Toyota advanced by 4.2 percent to ¥5,990, while Nissan added 5 percent to ¥1,250 after declines earlier in the week. Mazda also gained 5 percent, to ¥717.

    The banking and real estate sectors were also up on Friday. Chiba Bank gained 4.5 percent to ¥1,070, while Bank of Yokohama was up 6.6 percent to ¥885 and Mitsui Trust added ¥1,375.

    In real estate, Mitsui Fudosan advanced by 4 percent to ¥2,485, Tokyo Tatemono added 4.1 percent to ¥1,226, and Daiwa House gained 5.8 percent to ¥1,830.

    Among the losers on the day was department store chain Takashimaya, which was down 0.6 percent to ¥1,436 after it said its first quarter earnings had been lower than had been expected.





    June 28, 2006

    High raw materials prices hurt Tokyo markets

    Filed under: Companies, Toyota, Nissan, Nomura, Nikko Cordial, Kabu.com, Honda, Sumitomo Rubber, Bridgestone, Yokohama Rubber, Nissan Chemical Industries, Mitsui Chemicals

    The Tokyo equities markets were substantially lower on Wednesday as manufacturers felt the impact of rising prices for raw materials and as investors continued to worry about US interest rates. The Nikkei 225 was down 1.9 percent to 14,886.11, while the Topix index declined by 1.4 percent to 1,527.51.

    Tiremaker Bridgestone dropped 4.3 percent to ¥2,140 after it said that rising raw materials prices were forcing it to cut its 2006-2007 profits forecast. Yokohama Rubber fell by 2.8 percent to ¥488, while Sumitomo Rubber declined by 4.4 percent to ¥1,208.

    Chemical stocks were also hit by higher raw materials costs as the price of naphtha hit record highs in Asia. Nissan Chemical Industries was down 3.8 percent to ¥1,379, while Mitsui Chemicals declined by 6.8 percent to ¥704.

    The export-focused automobile manufacturing sector saw losses as concerns continued about the state of the US economy. Toyota was down 1.9 percent to ¥5,700. Nissan dropped 2.3 percent to ¥1,183 after issuing warnings of poor domestic sales and rising materials costs, while Honda fell 2.5 percent to ¥3.530.

    The securities sector was down 2.7 percent as a whole. Nomura declined by 3.1 percent to ¥2,035, while Nikko Cordial dropped 3.5 percent to ¥1,436 and Kabu.com fell 6.3 percent to ¥207,000.





    June 26, 2006

    Japanese consumer finance sector lower

    Filed under: Companies, Mitsui Fudosan, Nippon Steel, NTT, Mitsubishi Estate, JFE, Sumitomo Realty & Development, Aiful, Tokyo Tatemono, Promise, Aicom, Kobe Steel

    The Tokyo equities markets were a bit higher on Monday as good performance in the real estate sector outweighed fears in the consumer finance sector that new, more stringent rules may be imposed on such lenders. The Nikkei 225 and the Topix index each added 0.2 percent to 15,152.40 and 1,548.97 respectively. The only exception was the Mothers index of small and mid-cap stocks, which dropped 1.7 percent to 1,419.20.

    The news that European steel company Arcelor has agreed to a revised bid from Mittal Steel helped the iron and steel sector was up 1.6 as a whole. JFE was up 1.3 percent to ¥4,580, while Nippon Steel gained 1.7 percent to ¥417 and Kobe Steel added 2.7 percent to ¥340.

    The real estate sector gained 1.8 percent overall as it continued to benefit from higher commercial property rents in the cities. Mitsui Fudosan was up 1.9 percent to ¥2,400. Mitsubishi Estate and Tokyo Tatemono each added 2.8 percent, to ¥2,365 and ¥1,162, while Sumitomo Realty and Development advanced by 3 percent to ¥2,750 and NTT Urban Development gained 4.3 percent to ¥857,000.

    Consumer finance companies saw losses on the day on reports that government regulators are considering strict rules to help borrowers avoid taking on more debt than they can afford. Acom dropped 1.4 percent to ¥6,170, Promise declined by 1.8 percent to ¥6,430, and Aiful was down by 1.8 percent to ¥5,770.





    June 23, 2006

    US interest rate worries hurts Tokyo markets

    Filed under: Companies, Mitsui Fudosan, Toyota, Sanyo, Honda, Takefuji, Showa Denko

    The prospect of higher interest rates in the United States sent the Tokyo equities markets lower on Friday, but declines were limited by gains in the real estate sector. The Nikkei 225 dropped 0.1 percent to 15,124.04, while the Topix index declined by 0.2 percent to 1,545.57.

    Export-focused sectors were affected by concerns about the US economy, with the automobile manufacturing and consumer electronics sectors both lower. Among carmakers, Honda dropped 1.2 percent to ¥7,280 and Toyota was down 1.4 percent to ¥5,790. Meanwhile, among electronics companies, Sanyo Electric fell 3.2 percent to ¥243 after Finnish handset maker Nokia cancelled a joint venture with Sanyo before the project had even gotten underway.

    Consumer finance company Takefuji dropped 0.9 percent to ¥6,810 after news reports that a committee of Japan’s ruling party has agreed to rules on lending that will lower the maximum interest rate borrowers can be charged.

    The real estate sector added 1.7 percent as a whole, helped by data showing that rents in Japan’s largest cities are going up. Mitsui Fudosan added 3.1 percent to ¥2,355.

    Also defying the general trend of losses was chemicals manufacturer Showa Denko which added 6.3 percent to ¥487 after it said it was increasing its recurring profit forecast for the full year by 6.5 percent.





    June 22, 2006

    Nikkei, Topix up on electronics sectors

    Filed under: Companies, Sony, Canon, Sanyo, Tokyo Electron, Kyocera, Mitsui Mining, Daiwa Securities, Nomura, Nikko Cordial, Sharp, Sumitomo Metal Industries, Casio Computer, Mitsubishi UFJ Securities

    The Tokyo equities markets were significantly higher on Thursday after new data showed that exports were up substantially in May. The Nikkei 225 added 3.4 percent to 15,135.69, while the Topix index was up 2.9 percent to 1,549.12. The gains came even though some are calling for the resignation of the governor of the Bank of Japan after he invested in a fund created by shareholder activist Yoshiaki Murakami, who was recently put under arrest.

    Shares in companies dependent on commodities were up, with Mitsui Mining and Smelting adding 5.8 percent to ¥675 and Sumitomo Metal Mining rising by 6.3 percent to ¥1,352.

    Electronics-related companies were up substantially as well. Both printer and camera maker Canon and consumer electronics and entertainment giant Sony added 3.6 percent on the day, to ¥8,000 and ¥4,940 respectively. Sharp gained 4.5 percent to ¥1,767, while Sanyo Electric was up 4.6 percent to ¥251 and Kyocera rose by the same percentage to ¥8,940. Tokyo Electron advanced by 5.9 percent to ¥7,760. Casio Computer added 7.2 percent to ¥2,030.

    The securities sector, meanwhile, was up by 4.8 percent as a whole. Nomura gained 4.7 percent to ¥2,135, while Mitsubishi UFJ Securities was up 5 percent to ¥1,459. Daiwa Securities was up 5.1 percent to ¥1,459. Nikko Cordial advanced by 5.9 percent to ¥1,543.





    June 20, 2006

    Topix falls 1.1 percent on day

    Filed under: Companies, Hanshin, Mitsui Mining, Inpex, Sumitomo Metal Industries, Nippon Sheet Glass, Yoshinoya D&C, Nippon Oil, Cosmo Oil, JAL, Daiichi Sankyo, Hankyu, Asahi Glass

    Declines in stocks related to commodities sent the Tokyo equities markets lower on Tuesday. The Nikkei 225 dropped 1.4 percent to 14,648.41, while the Topix index declined by 1.1 percent to 1,510.32. The Mother’s index of small and mid-cap stocks was also down, by 2.1 percent.

    Transport-related stocks were down on the day. Japan’s largest airline, JAL, lost 2 percent to ¥299 on news of a possible strike on Wednesday that could disrupt flight schedules. Railways were down as well. Hankyu lost 4 percent to ¥535 after it said it had paid more than it intended to for Hanshin Electric Railway, which was down 5.4 percent to ¥848.

    Commodities-related stocks fell as concerns continued about the state of the US economy as well as in reaction to Monday’s news that China’s central bank has begun a program to decrease lending, which could see demand for commodities there decline. Sumitomo Metal Mining lost 4.5 percent to ¥1,253, while Mitsui Mining & Smelting dropped 3.8 percent to ¥638.

    Falling crude oil prices sent shares in oil-related companies lower. Nippon Oil declined by 0.9 percent to ¥799, while refiner and distributor Cosmo was down 2 percent to ¥502 and Inpex fell 3 percent to ¥890,000.

    Glassmakers were also lower on the day. Asahi Glass, Japan’ largest, was down 2.3 percent to ¥1,417, while Nippon Sheet Glass dropped 4.1 percent to ¥615 as investors showed their displeasure that it now owns UK glassmaker Pilkington.

    Advances were seen in the pharmaceutical sector, where Daiichi Sankyo added 1.4 percent to ¥2,930, as well as in restaurants, where Yoshinoya D&C added 2.2 percent to ¥229,000 on the prospect that US beef imports might resume soon.





    June 19, 2006

    Gains in pharma, seafood limit Tokyo losses

    Filed under: Companies, Sony, Mizuho, Hitachi, Advantest, Mitsubishi UFJ, Komatsu, Chugai Pharmaceutical, Mitsubishi Materials, Takeda, Nippon Suisan, Maruha, Daiichi Sankyo, Ishikawa Seisakusho

    The Tokyo equities markets were lower on Monday as export-reliant sectors saw declines on the news that China’s central bank is cutting back on lending. The announcement spurred worries that China’s economy is slowing down. The Topix index was also hurt by declines in the banking sector.

    The Nikkei 225 was 0.1 percent lower to 14,860.35, while the Topix dropped 0.5 percent to 1,527.66. Meanwhile, the Mothers index of small and mid-cap stocks closed flat at 1,462.71.

    Among companies hit by the news from China were smelter Mitsubishi Materials, which dropped 3 percent to ¥458 and construction machinery manufacturer Komatsu, down 3.5 percent to ¥2,075.

    The electrical machinery sector dropped 0.5 percent as a sector. Among electronics companies, Hitachi was down 1.1 percent to ¥743, while Sony dropped 1.6 percent to ¥4,860. In the semiconductor sector, Advantest lost 2.6 percent to ¥10,750.

    Among banks, Mizuho lost 1.9 percent to ¥875,000, while Mitsubishi UFJ declined by 2 percent to ¥1,460,000.

    Pharmaceuticals and seafood companies, however, saw gains on the day. Strong export sales in the seafood sector saw Nippon Suisan add 3.1 percent to ¥589 and Maruha gain 3.5 percent to ¥325.

    The pharmaceuticals sector was up 2.3 percent as a whole. Takeda added 1.7 percent to ¥6,730, Chugai was up 3.4 percent to ¥2,280, and Daiichi Sankyo gained 6.1 percent to ¥2,890.

    Ishikawa Seisakusho, which manufactures defence products in addition to textiles, added 17.7 percent on the day to ¥166 as suspicions rose that North Korea is preparing to test a missile in the near future.





    June 16, 2006

    Topix up by 3.3 percent

    Filed under: Companies, Mizuho, Mitsui Fudosan, Nippon Steel, Astellas Pharma, Mitsubishi UFJ, Sumitomo Metal Industries, Seven & I, Chugai Pharmaceutical, Aeon, Kobe Steel, Daiwa House, Daiichi Sankyo

    Equities markets in Tokyo saw substantial gains on Friday in both domestic and export-focused sectors. The Nikkei 225 ended the day 2.8 percent higher at 14,879.34, while the Topix index added 3.3 percent to 1,534.71.

    The steel sector added 4.7 percent as a whole on increased demand around the world. Nippon Steel was up 3.9 percent to ¥405, while Kobe Steel and Sumitomo Metal Mining each advanced by 4.6 percent to ¥339 and ¥1,330 respectively.

    Banks were up 4.3 percent as a sector on the expectation that interest rates will rise in July. Mitsubishi UFJ gained 4.2 percent to ¥1,490,000, while Mizuho Financial advanced by 4.9 percent to ¥892,000.

    Mitsui Fudosan was up 3.9 percent to ¥2,295 and Daiwa House added 5.1 percent to ¥1,773 as the real estate sector as a whole added 4.1 percent.

    Retail saw gains as well. Seven & I advanced by 2.2 percent to ¥3,710, while Aeon gained 4.4 percent to ¥2,500.

    The pharmaceuticals sector was up, but only by 0.8 percent and results were mixed for companies within the sector. Astellas Pharmaceuticals added 1 percent to ¥4,020, but Chugai and Daiichi Sankyo lost share value, by 0.9 percent to ¥2,205 and by 2 percent to ¥2,725 respectively.





    June 14, 2006

    Japanese carmakers see gains

    Filed under: Companies, Toyota, Matsushita Electric Industrial, Honda, KDDI, Aeon, Mazda, Sumitomo Rubber, Bridgestone, Mitsubishi Electric

    Tokyo equities markets were up on Wednesday despite early losses. The Nikkei 225, which was down by over 4 percent on Tuesday, added 0.6 percent to 14,309.56, while the Topix index gained 0.5 percent to 1,466.14. Meanwhile, the Mothers index of small and mid-cap stocks was up 3.7 percent to 1,394.09.

    The transport equipment sector added 0.9 percent as a whole. Honda was up 0.7 percent to ¥6,790, while Toyota gained 1.1 percent to ¥5,590 and Mazda advanced by 2.5 percent to ¥618.

    An expected decline in rubber prices spurred Goldman Sachs to recommend both Sumitomo Rubber, which it just began covering, and tyre maker Bridgestone. Sumitomo Rubber added 8.2 percent to ¥1,271, while Bridgestone advanced by 1.1 percent to ¥2,190.

    Another export-focused sector, electronics, gained 0.6 percent on the day. Mitsubishi Electric added 1 percent to ¥844, while Matsushita Electric Industrial was up 1.4 percent to ¥2,245.

    Retailers were up 0.5 percent on the day as a sector, with Aeon advancing by 3.7 percent on the day after recent losses.

    In the telecommunications sector, KDDI dropped 1.2 percent to ¥661,000 after it said that personal information on approximately 4 million customers had been disclosed.





    June 12, 2006

    Real estate up 2.1 percent in Tokyo

    Filed under: Companies, Mitsui Fudosan, Toyota, Mitsubishi Estate, Honda, Seven & I, Aeon, Oji Paper, Nippon Paper, Nippon Suisan

    Tokyo equities markets made small gains on Monday, with the Nikkei 225 adding 0.6 percent to 14,833.01 and the Topix index advancing by 0.8 percent to 1,510.89. Meanwhile, the Mothers market, listing small and mid-cap stocks gained 4 percent to 1,376.86.

    Domestic stocks did well after the most recent gross domestic product data was revised upward. Retail added 2 percent, while the real estate sector gained 2.1 percent and paper and pulp was up 3.2 percent.

    Among retailers, Seven and I was up 1.4 percent to ¥3,700, while Aeon gained 3.2 percent to ¥2.445. In the real estate sector, Mitsui Fudosan advanced by 2 percent to ¥2,305 while its largest rival, Mitsubishi Estate, added 2.1 percent to ¥3.700.

    The news that wholesale tissue paper prices will go up for the first time in three years worked to the advantage of the paper sector. Nippon Paper was up by 3 percent to ¥452,000. Oji Paper gained 5.3 percent to ¥611 when Mitsubishi UFJ Securities revised its recommendation upward.

    Exporters also saw gains on the day. In the automobile manufacturing sector, Honda was up 0.7 percent to ¥7,030, while Toyota gained 0.9 percent to ¥5,770.

    International sales have also helped the seafood sector. Nippon Suisan, for example, added 2.4 percent to ¥593.





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