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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    February 28, 2007

    Kobe Steel drops over 4 percent on session

    Filed under: Companies, Daiwa Securities, Nomura, Nikko Cordial, Kobe Steel, Nippon Meat Packers

    The Tokyo equities markets were much lower on Wednesday. The Nikkei 225 dropped 515 points, or 2.85 percent, to close at 17,604, while the Topix index fell 3.23 percent to 1,752.74. At one point during the session, every stock listed on the Nikkei was in negative territory, but a few were able to make it back into positive figures by the end of the day.

    Trade was suspended on the Topix index for 15 minutes early in the session when the index fell 70 points in a short period of time, triggering its “safety valve” in the event of a sudden, substantial decline. There was also a warning that if the Topix fell by 100 points below the previous close, another safety device would trigger and suspect arbitrage trading in all First Section shares. That step never had to be taken. Still, declines were sharp enough that chief cabinet secretary Yasuhisa Shiozaki said that the government was monitoring the market closely, although assurances were made that Japan’s economy was still sound.

    Nikko Cordial (TYO: 8603; SGX: N06) was hurt by news reports that the Tokyo Stock Exchange was in the final stages of preparing to delist it after its recent scandals. The broker’s shares fell 14.85 percent in consequence of the rumors. Elsewhere in the securities sector, Daiwa Securities (TYO: 8601) were 5.3 percent lower to ¥1,501, while Nomura Holdings (TYO: 8604; SGX: N33; NYSE: NMR) fell 5.33 percent, to ¥2,575.

    Kobe Steel (TYO: 5406) was just one of many miners and heavy industries that fell on the session, dropping 4.23 percent to ¥4.76.

    Nippon Meat Packers (TYO: 2282) was one of the two companies listed on the Nikkei to end the session higher. It added 3.78 percent to ¥1,481.





    February 26, 2007

    Banks, real estate lower in Tokyo

    Filed under: Companies, Sony, Mizuho, Mitsui Fudosan, Toyota, Mitsubishi UFJ, Sharp, Pioneer

    In Tokyo on Monday, both the Nikkei 225 and the Topix index reached multi-year closing highs. The Topix was at a 15-year closing high as it added 0.1 percent to 1,816.97, while the Nikkei gained 0.2 percent to 18,215.35, its highest close in nearly seven years. The small and mid-cap Mothers market, however, reversed recent gains to end 2.1 percent lower to 1,164.07.

    Some export sectors were higher. The automobile manufacturing sector added 0.6 percent as a whole, with Toyota Motor (TYO: 7203; NYSE: TM; LSE: TYT) gaining 0.7 percent to ¥8,290.

    The electronics sector was mixed. Sony (TYO: 6758; NYSE: SNE) added 0.6 percent to ¥6,390 on an upgrade from “sell” to “buy” from Merrill Lynch (TYO: 8675; NYSE: MER). The broker cited overseas economic growth and a weaker yen as reasons for its upgrade.

    On the other hand, broker downgrades sent Sharp and Pioneer lower. UBS (TYO: 8657; NYSE: UBS; SWX: UBSN) reduced its rating on Sharp (TYO: 6753) from “neutral 2” to “reduce 2” on its belief that profit growth will slow for the consumer electronics maker. Sharp’s shares dropped 1.3 percent to ¥2,290. Pioneer (TYP: 6773) fell 3.3 percent to ¥1,676 after Deutsche Bank (NYSE: DB) dropped its target share price from ¥1,600 to ¥1,500.

    The real estate sector dropped 1 percent as a whole, with Mitsui Fudosan (TYO: 8801; NASDAQ: MDSFF) 1.1 percent lower to ¥3,570.

    Banks were lower as well, by 1.2 percent as a sector. Mitsubishi UFJ (TYO: 8360; NYSE: MTU) was down 0.7 percent to ¥1,510,000, while Mizuho Financial (TYO: 8411; NYSE: MFG) dropped 1.7 percent to ¥860,000.





    February 24, 2007

    Avoiding Estate Agents

    Filed under: Companies

    If you want to avoid estate agents and estate agency fees, there are now a range of house buyers - individuals and companies - who will be willing to negotiate directly with you in order to purchase your property.

    Even better, most of these companies already have the funds available for a sale, which can allow you to sell house for cash when you’re selling property.

    The result is that if you find yourself needing to make a quick sale, for any reason - whether divorce, debt, or even moving aborad, if you find yourself looking to “sell my house fast” then it’s certainly worth considering that there is a strong market in cash buyers looking to make a quick cash sale - and all without the help from estate agents.





    February 22, 2007

    Real estate sector higher in Tokyo

    Filed under: Companies, Mitsui Fudosan, Mitsubishi Estate, Mitsubishi UFJ, Nomura

    In Tokyo on Thursday, the Nikkei 225 closed 1.1 percent higher to 18,108.79, the first time the index has ended a session above the 18,000 level in nearly seven years. The Topix index added 0.9 percent to 1,802.90, while the Mother’s index gained 4 percent to 1,162.25. The gains came as investors reacted to Wednesday’s announcement from the Bank of Japan that it was raising the interest rate to 0.5 percent.

    Banks added 0.7 percent as a sector on the expectation that higher interest rates would allow the banks to increase their margins on loans. Mitsubishi UFJ (TYO: 8306; NYSE: MTU) matched the sector’s gain, rising 0.7 percent to ¥1,520,000.

    The real estate sector was also higher, adding 3.3 percent as a whole. The gains there were rather counterintuitive, as higher interest rates generally tend to hurt the market for properties. Analysts believe that the gains mean that investors believe that the rate hike is a way of the Bank showing its confidence in the nation’s economy. Mitsui Fudosan (TYP: 8801; NASDAQ: MDSFF) added 1.8 percent to ¥3,490, while Mitsubishi Estate (TYP: 8802) gained 3.5 percent to ¥3,820.

    In the securities sector, Nomura Holdings (TYO: 8604; NYSE: NMR; SGX: N33) outstripped the sector as a whole, adding 4.9 percent to ¥2,770, while the sector gained 4.7 percent on the session.





    February 20, 2007

    Steel sector gains on stake-building

    Filed under: Companies, Nippon Steel, eAccess, Sumitomo Metal Industries, Japan Steel Works, Nissan Diesel Motor, Nakayama Steel Works

    As the Bank of Japan began its two days of meetings ahead of announcing a new decision on interest rates, the Nikkei 225 closed even Tuesday at 17,939.12, while the Topix index added 0.2 percent to 1,782.73. Investors remained cautious ahead of the Bank’s announcement, scheduled for Wednesday, while analysts were divided over whether rate would go up or not. The banking sector fell 0.2 percent amid uncertainty over what the Bank will decide.

    Bids news was in focus. In the automobile manufacturing sector, the news that Volvo (Stockholm Stock Exchange: VOLV A, VOLV B; NASDAQ: VOLV) will acquire Nissan Diesel Motor (TYO: 7210) produced so many buy orders at ¥523, 18.1 percent higher than at the close on Monday, that the company’s shares did not trade on the session.

    In the steel sector, Nippon Steel (TYO: 5401) added 2.6 percent and Nakayama Steel Works (TYO: 5408) was 6.6 percent higher after Nippon said that it has increased its stake in Nakayama to 8.72 percent. Nippon closed at ¥785, while Nakayama ended the session at ¥501. Elsewhere in the sector, Sumitomo Metal Mining (TYO: 5405) gained 4.1 percent to ¥1,890, while Japan Steel Works was up 7.4 percent to ¥1,214.

    EAccess (TYO:9427) was 6 percent higher to ¥83,000 after its mobile phone division said it would start offering wireless data services at the end of March.





    February 15, 2007

    Retailers advance on economic growth data

    Filed under: Companies, Marui, Takashimaya, Seven & I, Mitsukoshi, Acom, Orient

    Retail sectors advanced in Tokyo on Thursday after new gross domestic product figures showed that the Japanese economy grew at an annualized rate of 4.8 percent in the last quarter of 2006, above expectations of 3.8 percent growth for the quarter. It is widely expected that the Bank of Japan will use the new report as an excuse to hike interest rates when it next meets. The Nikkei 225 added 0.81 percent to 17,897.23, its highest close since May 2000. The Topix index gained 0.65 percent to 1,776.71.

    Department stores and general retail both were helped by the new data. Among department stores, Marui added 7.28 percent to ¥1,533, while Mitsukoshi gained 7.75 percent to ¥584. Takashimaya was 10.03 percent higher to ¥1,690. Japan’s largest general retailer, Seven & I Holdings, was up 4.75 percent to ¥3,750.

    The consumer finance sector, on the other hand, declined. Orient dropped 19.41 percent to ¥191 after it said it expects to incur losses for the current fiscal year. It blamed new, more stringent government rules on how much interest lenders can charger their customers for the anticipated narrowing of margins. Acom dropped 0.88 percent on the session, to ¥4,480.





    February 13, 2007

    Tokyo banks up on economic optimism

    Filed under: Companies, Mizuho, SMFG, Mitsui Fudosan, Mitsubishi Estate, Mitsubishi UFJ, Nikko Cordial, Sumitomo Realty & Development

    After taking Monday off for a holiday, the Tokyo equities markets gained ground on Tuesday. Most of the advances came in domestic sectors after indications that Japan’s economic recovery is proceeding as scheduled. The Nikkei 225 added 0.67 percent to 17,621.45, while the Topix index gained 0.62 percent to 1,755.90.

    The real estate sector gained on a report from Mitsui Fudosan that its profits in the past 9 months had risen by 14 percent, driven by increasing demand for office space. Mitsui added 6.83 percent to ¥3,440, its highest share price ever. Sumitomo Realty & Development gained 6.4 percent to ¥4,820, while Mitsubishi Estate was 3.91 percent higher to ¥2,730.

    Banks were also up. Mizuho Financial Group added 0.7 percent to ¥865,000, while Mitsubishi UFJ gained 1.39 percent to ¥1.46 million and SMFG added 1.74 percent to ¥1.17 million.

    Nikko Cordial, which has seen huge declines recently due to an accounting scandal, was 6.56 percent higher to ¥1,250 as investors hoped for news about how the broker will improve its accounting practices.





    February 8, 2007

    Tokyo shipping sector sees declines

    Filed under: Companies, NTT, Mitsui OSK, Nippon Yusen, Kawasaki Kisen, Advantest, Honda, KDDI, Chugai Pharmaceutical

    Sell-offs in the shipping sector prevented the Tokyo equities markets from advancing on Thursday. The Nikkei 225 closed even at 17,292.48, while the Topix index closed 0.5 percent lower to 1,720.18. The Nikkei was prevent from dropping mainly by export-focused sectors which saw gains due to weakness in the yen.

    The shipping sector fell 5.1 percent as a whole on the session. The declines came after Nippon Yusen, the largest shipper in Japan, cut its prediction on operating profits for its fiscal year, which ends in March. Yusen fell 7.8 percent to ¥904. The news helped send Kawasaki Kisen 4.2 percent lower to ¥1,044 even though it raised its estimate on operating profits by ¥1 billion, to ¥61 billion. Mitsui OSK Lines dropped 3.5 percent to ¥1,225.

    Among export-focused sectors, electrical machinery added 0.5 percent on the day, while transport equipment gained 0.3 percent. Advantest gained 2.2 percent to ¥5,570. Honda Motor was 1.7 percent higher to ¥4,710.

    The telecommunications sector was higher. KDDI added 1.8 percent to ¥925,000 after it gained the most subscribers of any Japanese telecom in the latest figures released. NTT DoCoMo gained 4.4 percent to ¥215,000.

    Chugai Pharmaceutical was 6.2 percent higher to ¥2,835 on a statement from Swiss pharmaceutical company Roche that it was thinking about raising its stake. Roche already owns half of Chugai. The drug maker was also helped by an upgrade from “hold” to “buy” from Nikko Citigroup.





    February 6, 2007

    Camera makers up on switch to digital

    Filed under: Companies, Sony, Canon, Toyota, Nissan, Mitsubishi UFJ, Nikko Cordial, Honda, Olympus, Nikon

    The Tokyo equities markets bounced back from Monday’s sell-offs to end the session higher on Tuesday. The Nikkei 225 closed up 0.4 percent to 17,406.86, while the Topix index was 0.9 percent higher to 1,732.42.

    As the yen weakened late in the day, export-focused stocks saw gains. In the automobile manufacturing sector, Nissan Motor added 0.3 percent to ¥1,387 after steep declines on Monday. Toyota Motor was 1.8 percent higher to ¥7,960, while Honda Motor gained 2 percent to ¥4,620.

    In the electronics sector, Canon added 1.3 percent to ¥6,230. Sony was 2.5 percent higher to ¥5,840. Meanwhile, camera manufacturers were helped not only by the weakness of the yen but by the shift to digital cameras. Nikon and Olympus both had significant gains in the last quarter of 2006 and both upped their full-year expectations. Olympus added 3.9 percent on the session to ¥4,050, while Nikon gained 5.4 percent to ¥2,750.

    Even Nikko Cordial saw a gain of 1.9 percent to ¥1,175 after it was revealed that US investment house Harris Associates had acquired a 5 percent stake in Nikko.

    The banking sector was lower after Goldman Sachs downgraded the entire sector from “attractive” to “neutral”. Mitsubishi UJF dropped 0.7 percent to ¥1.41 million.





    February 5, 2007

    Nissan Motor reports profits down 23 percent in quarter

    Filed under: Companies, Toyota, Matsushita Electric Industrial, Nissan, Honda, Toshiba, Nippon Telegraph & Telephone

    A stronger yen and declines in export-focused shares send the Tokyo equities markets lower on Monday. The Nikkei 225 dropped 1.1 percent to 17,244.80, while the Topix index was 1.5 percent lower to 1,716.28.

    The automobile manufacturing sector was hurt not only by the strengthening yen but also by Nissan Motor’s quarterly report, which showed net profits down 23 percent. Nissan also issued a cut it its projections for the full year, sending its shares 8.3 percent lower to ¥1,383. Nissan’s report also sent other carmakers lower. Toyota Motor fell 1.6 percent to ¥7,820, while Honda Motor dropped 3.6 percent to ¥4,530.

    In the electronics sector Matsushita Electric Industrial, which makes the Panasonic brand of consumer electronics, was 1.7 percent lower to ¥2,355, while Toshiba fell 2.1 percent to ¥737, again hurt by the yen’s rise versus the US dollar. The yen was trading at ¥120.8 against the greenback, compared to the ¥121.4 where it sat on Friday.

    Domestic sectors did not fare much better. Telecommunications giant Nippon Telegraph & Telephone was 2.4 percent lower to ¥610,000 after reiterating its previous full-year guidance, which led investors to assume that it expects no growth in profits for the year.





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