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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    November 30, 2006

    Komatsu adds 2.7 percent

    Filed under: Companies, Toyota, Inpex, Daiwa Securities, Nomura, Nikko Cordial, Honda, Komatsu, Credit Saison, Aiful, Takefuji

    New data on the growth of the US economy helped the Tokyo equities markets to gains on Thursday. Both export-focused and domestic stocks benefited. The Nikkei 225 added 1.2 percent to 16,274.33, while the Topix index gained 1.5 percent to 1,603.03. The Mothers index of small and mid-cap stocks did ever better, ending 2.5 percent higher to 1,152.81.

    Domestically, the securities and consumer finance sectors were higher. Consumer finance companies, which have had a bad year as the government made attempts to limit how much interest they can charge customers on loans, saw especially large gains. Credit Saison gained 6.5 percent to ¥4,080, while Takefuji added 9.7 percent to ¥4,630 and Aiful jumped 10.8 percent to ¥3,700.

    The securities sector was 3.6 percent higher as a whole. Daiwa Securities was 3 percent higher to ¥1,327, while Nomura Holdings added 3.8 percent to ¥2,030 and Nikko Cordial gained 3.9 percent to ¥1,430.

    With crude oil prices still rising, upstream oil company Inpex was 1.6 percent higher to ¥997,000.

    Automobile manufacturers also managed advances. Toyota added 1.3 percent to ¥7,020, while Honda Motor gained 2.2 percent to ¥4,100. Meanwhile, construction machinery manufacturer Komatsu was 2.7 percent higher to ¥2,105.





    November 29, 2006

    Financial sectors see gains

    Filed under: Companies, Toyota, Mitsui OSK, Nippon Yusen, Kawasaki Kisen, Advantest, Nissan, Daiwa Securities, Mitsubishi UFJ, Nomura, Elpida Memory, Sapporo Hokuyo, Bank of Fukuoka

    Data showing that factory output in Japan was up a seasonally-adjusted 1.6 percent in October sent the Tokyo equities markets higher on Wednesday. The Nikkei 225 went back over the 16,000 mark, ending the session 1.4 percent higher to 16,076.20. The Topix index added 1.6 percent to 1,580.10. The best factory performance came in the automobile manufacturing and semiconductors sectors, both of which saw gains on the session.

    In the semiconductors sector, Advantest gained 1.5 percent to ¥6,060, while Elpida Memory was 3 percent higher to ¥5,550. Meanwhile among carmakers, Nissan Motor was up 0.7 percent to ¥1,299 and Toyota added 1.5 percent to ¥6,930.

    The securities sector also saw gains. Nomura Holdings gained 3.7 percent to ¥1,955, while Daiwa Securities added 4.4 percent to ¥1,288. Banks did well, too, with larger banks seeing bigger gains than smaller ones could manage. Sapporo Hokuyo, based in Hokkaido, was up 0.9 percent to ¥1,110,000, while Bank of Fukuoka, which has its center of operations in Kyushu, gained 1.1 percent to ¥856. Meanwhile, Mitsubishi UFJ was 2.1 percent higher to ¥1,450,000.

    The transport sector was up after Credit Suisse hiked target share prices there. Nippon Yusen gained 2.9 percent to ¥804, while Kawasaki Kisen was up 3.1 percent to ¥828 and Mitsui OSK added 5 percent to ¥1,046.





    November 28, 2006

    Mothers index adds 1.5 percent

    Filed under: Companies, Sony, Toyota, Sanyo, Honda, Softbank, Sumitomo Realty & Development, Aeon

    In Tokyo on Tuesday the equities markets were mixed, with the Nikkei225 down 0.2 percent to 15,855.26 while the Topix added 0. Percent to 2,555.11. The Mothers market of small and mid-cap stocks gained 1.5 percent to 1,118.55.

    Export stocks were generally lower. In the automobile manufacturing sector, Toyota fell0.7 percent to ¥6,830 while Honda dropped 2.5 percent to ¥3,940. The electronics sector also saw losses. Sanyo Electric was 1.2 percent lower to ¥168 on the announcement that it will see losses for the third year in a row, while Sony dropped 1.7 percent to ¥3,970.

    The real estate sector added 1.4 percent as a whole, with Sumitomo Realty & Development gaining 1.5 percent to ¥3,480. In the telecommunications sector, meanwhile, Softbank was up 2.4 percent to ¥2,370. Still, not all domestic sectors saw positive movement. The retail sector dropped 0.6 percent, with Aeon down 0.8 percent to ¥2,660.





    November 27, 2006

    Sanyo announces more layoffs

    Filed under: Companies, Sony, NTT, Toyota, Sanyo, Honda, All Nippon Airways, Eisai

    In Tokyo on Monday equities markets saw gains, especially in domestically-focused stocks, as the Nikkei 225 added 1 percent to 15,885.38 and the Topix index ended the session 1 percent higher as well, at 1,553.01.

    Export-focused stocks did not have as good a day of it. In the electronics sector, Sony dropped 0.7 percent to ¥4,570 after it said that eight of its best-selling models of digital cameras were defective, becoming unable to take pictures when exposed to heat and humidity. Sanyo, meanwhile, fell 5.6 percent to ¥170 as it announced another 2,200 employee layoffs and said it would end the fiscal year with losses for the third year in a row on declining mobile phone sales both in the US and domestically.

    Automobile manufacturers saw declines as well. Toyota was 0.2 percent lower to ¥6,880, while Honda Motor was down 0.5 percent to ¥4,040.

    Some of the domestic stocks that saw gains on the session were helped by broker upgrades. Fixed-line telecommunications company NTT added 2.3 percent to ¥578,000 on an increased target share price from Morgan Stanley. All Nippon Airways was 3.2 percent higher to ¥423 on an upgrade from Nikko Citigroup, which cited strong demand for international flights. Pharmaceutical company Eisai gained 3.3 percent to ¥6,240 on both a ratings upgrade and a raised target share price from UBS.





    November 22, 2006

    Equities markets see gains

    Filed under: Companies, Mitsui Fudosan, Inpex, Mitsubishi UFJ, Sumitomo Metal Industries, Seven & I, Softbank, NEC

    The Tokyo equities markets were substantially higher on Wednesday. The Nikkei 225 added 1.1 percent to 15,914.23 and the Topix index gained 1.3 percent to 1,552.87, while the Mothers index of small and mid-cap stocks was up 6 percent to 1,069.72 following multi-year lows reached earlier in the week. The gain in the Mothers index came as investors came to believe that stocks listed there have fallen enough to qualify as bargains.

    Gains in the prices of metals took the non-ferrous metals sector 4.1 percent higher, with Sumitomo Metal Mining adding 3.4 percent to ¥1,414. Oil prices that were up Tuesday due to bad weather in Alaska sent Inpex 4.6 percent higher to ¥937,000.

    Domestic sectors saw gains as well. The banking sector was up 2 percent as a whole, with Mitsubishi UFJ adding 2.2 percent to ¥1,420,000. Seven & I gained 2.3 percent to ¥3,500 in a retail sector that was 2.8 percent higher as a whole. The real estate sector was up 3 percent, with Mitsui Fudosan adding 2.1 percent to ¥2,620.

    Telecommunications and internet company Softbank saw a gain of 8.4 percent on the session, to ¥2,320.

    Among losers on the day was electronics maker NEC, dropping 5.6 percent to ¥557 on a report that showed losses in the first half and on a 64 percent downward revision in its prediction for the full year.





    November 21, 2006

    Equities markets nearly even on session

    Filed under: Companies, Mizuho, Nippon Yusen, Advantest, Tokyo Electron, Inpex, Takefuji, Bridgestone

    Tokyo equities markets moved very little on Tuesday after Monday’s declines. Banks were still weak, but the consumer finance and electronics sectors saw gains. The Nikkei 225 added 0.1 percent to 15,734.14, while the Topix index dropped 0.1 percent to 1,532.95.

    Bridgestone dropped 1.6 percent to ¥2,405 in reaction to Monday’s announcement by the tire maker that it is putting off its earnings target by another two years and will not reach the goal of 5 percent net profit margins until at least 2010.

    Banks were hurt by data showing that core operations were hurt by lending margins that had tightened. Mizuho Financial was 2.2 percent lower to ¥805,000.

    On the other hand, consumer finance were higher as some investors and hedge funds have begun to consider them to be bargains. Within the sector, Takefuji added 1.1 percent to ¥4,010.

    The shipping sector did will on lower oil prices overnight, with Nippon Yusen gaining 2.1 percent to ¥768. The drop in oil prices did not help oil company Inpex, which dropped 0.7 percent to ¥896,000.

    Tech sectors saw gains on the session, with Tokyo Electron adding 0.4 percent to ¥8,600. Among semiconductors, Advantest was 1.4 percent higher to ¥5,950.





    November 20, 2006

    Nikkei drops by 2.3 percent

    Filed under: Companies, Mizuho, Sanyo, Advantest, Inpex, Mitsubishi UFJ, Honda

    Investor worries about the US economy helped send the Tokyo equities markets significantly lower on Monday. The Nikkei 225 was 2.3 percent lower to 15,725.94, while the Topix index fell 2.5 percent to 1,533.94. The Mothers index of small and mid-cap stocks declined even further, dropping 6.2 percent to 1,022.54. Another possible reason for the declines were remarks from the head of the Tokyo Stock Exchange, who said that share price declines recently are due to an upcoming end to tax breaks on Japanese shares.

    Export-focused sectors were lower in the face of bad economic news from the United States, including a drop in housing starts in October. In the automobile manufacturing sector, Honda Motor was 2.6 percent lower to ¥4,100. In the semiconductors sector, Advantest fell 4.1 percent to ¥5,870. Among electronics companies, Sanyo Electric dropped 12.7 percent to ¥179 on rumors that it could see a losing full-year report.

    With crude oil prices still dropping, Inpex Holdings was 3.4 percent lower to ¥902,000.

    The banking sector saw losses on concerns that lending might have slowed down. Mitsubishi UFJ fell 2.8 percent to ¥1,380,000, while Mizuho Financial was 3.1 percent lower to ¥823,000.





    November 17, 2006

    Semiconductors sector up in Tokyo

    Filed under: Companies, Mizuho, Tokyo Electron, Inpex, Sumitomo Realty & Development, JAL

    In Tokyo on Friday both the Nikkei 225 and the Topix index fell by 0.5 percent, to 16,091.73 and 1,573.54 respectively. Some of the declines were due to declines in the oil sector as crude oil prices fell, while the banking sector was also lower.

    The semiconductors sector saw gains on the session on a report from the Semiconductor Equipment Association of Japan said that chip equipment is in high demand globally. Tokyo Electron was 2.8 percent higher to ¥8,930.

    The banking sector was 1.1 percent lower as a whole after the Bank of Japan’s governor did not make hawkish comments about interest rates when the Bank declined to raise the rate when they met Thursday. Analysts are convinced that higher interest rates will benefit banks because of the income they will receive from higher interest payments on loans will outweigh the interest they pay to depositors. Mizuho Financial dropped 0.8 percent to ¥849,000.

    In the real estate sector, Sumitomo Realty & Development fell 3.4 percent to ¥3,410 even though its reported that its consolidated recurring profit was up 83 percent. The decline was attributed to profit-taking.

    The drop in oil prices sent Inpex down 3.5 percent to ¥934,000. Despite the decline in oil prices, the air transport sector was also lower, dropping 0.9 percent as a whole. Japan Airlines fell 1.4 percent to ¥217.





    November 16, 2006

    Nikkei drops 0.5 percent

    Filed under: Companies, Toyota, Inpex, Sompo Japan, Hakuhodo, Nissin Food, Myojo Foods

    The Tokyo equities markets were lower on Thursday after the Bank of Japan chose to maintain interest rates at their current level. The Nikkei 225 dropped. 0.5 percent to 16,163.87, while the Topix index was 0.6 percent lower to 1,582.04. Declines came in both domestic and export-focused sectors.

    Real estate was one exception to the declines on the day, as the sector as a whole gained 0.3 percent on the expectation that land prices will soon emerge from deflation nationwide. In the oil sector, Inpex added 1.9 percent to ¥968,000 on an upgrade of its full year expectations for recurring profits.

    The second-largest advertising company in Japan, Hakuhodo, added 4.9 percent to ¥7,010 on an upgrade from “neutral” to “outperform” from Credit Suisse, citing the company’s apparent undervaluation.

    Nissin Food gained 5.5 percent to ¥3,630 on an increased recommendation from Merrill Lynch, from “sell” to “buy”, after the instant noodle maker bid for Myojo Foods. Myojo gained 2.6 percent to ¥883.

    Among losers, the insurance sector dropped 1.9 percent as a whole, with general insurer Sompo Japan 1.6 percent lower to ¥1,411. Also declining was the transport equipment sector, which fell 1 percent. Toyota dropped 0.8 percent to ¥7,230.





    November 13, 2006

    NTT drops on lower fixed-line demand

    Filed under: Companies, SMFG, NTT, Fast Retailing, Fanuc, Sega Sammy

    Tokyo equities markets saw decline on Monday as the Nikkei 225 fell 0.6 percent to 16,022.46 after going below 16,000 earlier in the day. The Topix index was 0.8 percent lower to 1,568.76.

    The losses came on anticipated gross domestic product figures, due Tuesday, which many expect will say that the Japanese economy only grew at a 1 percent annual rate in the third quarter. If these figures turn out to be correct, it would be the slowest expansion in the Japanese economy since 2004. Furthermore, data released Friday showed that machinery orders were down 7.4 percent in September from the same month last year. Both news items increased concerns that Japan’s economic recovery is losing momentum.

    Declining demand for fixed-line telephones led to a 9.4 percent drop in operating profits in the fiscal first half for NTT, which dropped 1 percent on the session to ¥571,000.

    Video game and slot machine maker Sega Sammy fell 8.4 percent to ¥2,030 on a full-year profit prediction that was lowered by 20 percent.

    In the retail sector, Fast Retailing closed 2.3 percent lower to ¥9,990. In other domestically-focused sectors, SMFG, one of Japan’s leading banks, dropped 1.6 percent to ¥1.22 million, while machinery products manufacturer Fanuc fell 0.9 percent to ¥10,360.





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