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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    January 15, 2007

    Mizuho/Shinko merger prompts consolidation rumors in securities sector

    Filed under: Companies, SMFG, Sumitomo, Daiwa Securities, Mitsubishi UFJ, Nikko Cordial, Sharp, Honda, Komatsu, Fanuc

    Equities markets in Tokyo were up on Monday, with the Nikkei 225 adding 0.9 percent to 17,209.92 and the Topix index ending 1.1 percent higher to 1,704.58. The Topix was helped by new data showing that core machinery orders in the private sector were up 3.8 percent in November. The new numbers helped not only the construction machinery sector but also the banking sector, as the data raised the chances that the Bank of Japan will raise interest rates when it meets later this week.

    The banking sector was 2 percent higher as a whole, with Mitsubishi UF up 1.3 percent to ¥1,530,000. Sumitomo Trust & Banking added 2.8 percent to ¥1,325, while SMFG gained 3.3 percent to ¥1,270,000.

    The news that Shinko Securities and Mizuho Securities will merge promoted more consolidation speculation in the securities sector, which added 2.7 percent on the session. Daiwa Securities was 3.4 percent higher to ¥1,394. Meanwhile, Nikko Cordial gained 3.3 percent to ¥1,309 after it was learned that Canadian investment management firm Mackenzie Financial has become its largest shareholder.

    In the construction machinery sector, Fanuc added 1.5 percent to ¥11,350, while Komatsu was up 1.7 percent to ¥2,365.

    Among export-focused stocks, Sharp was 0.4 percent higher to ¥1,992, while Honda gained 1.7 percent to ¥4,690.





    January 5, 2007

    Isetan sees gains on record sales

    Filed under: Companies, Isetan, Nippon Steel, Canon, Toyota, Inpex, Honda, JFE, Toshiba, Sumitomo Metal Industries, Japan Petroleum, Mitsubishi Materials, Oji Paper, Toho Zinc, Fanuc

    The Tokyo equities markets were lower on Friday as trade volumes were low ahead of another holiday weekend. The Nikkei 225 dropped 1.51 percent to 17,091.51, while the Topix index was 1.4 percent lower to 1,675.33.

    The automobile manufacturing sector saw losses as investors took profits after recent gains. Toyota was down 2.4 percent to ¥7,900, while Honda fell almost 3 percent to ¥4,600.

    Other export-dependent sectors also saw declines. Canon was 2 percent lower to ¥6,530. Meanwhile, industrial robot manufacturer Fanuc fell 2.8 percent to ¥11,430. Bucking the trend was Toshiba, which was 1.64 percent higher to ¥808 on reports that it will develop a new boiling water reactor for nuclear power plants, to be marketed both domestically and in foreign markets by 2015.

    Declines in crude oil prices hurt oil companies. Inpex dropped 2.5 percent to ¥919,000, while Japan Petroleum fell almost 5 percent to ¥6,610.

    The steel sector was down as well, as were companies dealing in non-ferrous metals. Among steel makers, JFE was 5.7 percent lower to ¥5,750 and Nippon Steel was down 6 percent to ¥622. In the non-ferrous metals sector, Mitsubishi Materials fell 1.4 percent to ¥430, while Sumitomo Metal Mining was 2.5 percent lower to ¥1,456 and Toho Zinc dropped 7.4 percent to ¥1,021.

    Gainers on the day included department store Isetan, which added 2 percent to ¥2,230 on record sales. Oji Paper was helped by the decline in crude oil prices, gaining almost 4 percent to ¥675.





    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.





    August 2, 2006

    Nikkei 225 up 0.2 percent

    Filed under: Companies, Sony, Mizuho, Hitachi, Canon, Hokuetsu Paper, Astellas Pharma, Mitsubishi UFJ, Komatsu, Oji Paper, Takeda, Daiichi Sankyo, Fanuc

    The Tokyo finance markets were higher on Wednesday. The Nikkei 225 and the Topix index each added 0.2 percent, to 15,464.29 and 1,569.65 respectively. The Mothers index of small and mid-caps was even higher, gaining 5 percent to 1,277.3.

    Oji Paper was 2.1 percent higher to ¥681 after it said it will continue to pursue its hostile takeover bid for Hokuetsu Paper Mills. Hokuetsu gained 3.8 percent to ¥814.

    The pharmaceuticals sector was mixed. Takeda added 0.8 percent to ¥7,540 and Daiichi Sankyo was up by 2 percent to ¥3,310. Astellas, however, dropped 1.3 percent to ¥4,510 after higher research expenditures and lower prices on its products led to a decline of 64 percent in quarterly profits.

    Export-focused businesses saw share prices fall. Camera and copier maker Canon was 0.9 percent lower to ¥5,400, while Sony declined by 1 percent to ¥5,180. Heavy machinery manufacturer Komatsu fell 1.1 percent to ¥2,275 and industrial robot maker Fanuc ended the session down 2 percent to ¥9,330.

    Industrial electronics manufacturer Hitachi dropped 3.5 percent to 693 after it was said that it is being urged to pay more than ¥100 billion to compensate Chubu Electric Power after one of the utility’s nuclear plants shut down because a Hitachi-designed turbine was flawed.

    Banks were down on the session. Mizuho Financial fell 0.4 percent to ¥939,000, while Mitsubishi UFJ dropped 0.6 percent to ¥1,556,000 after its quarterly report disappointed investors.





    July 19, 2006

    Steel stocks higher in Tokyo

    Filed under: Companies, Sony, Mizuho, Nippon Steel, Canon, Toyota, Matsushita Electric Industrial, Nissan, Mitsubishi UFJ, Honda, JFE, Komatsu, JAL, Fanuc, Japan Steel Works, Sumitomo Mitsui, All Nippon Airways

    In Tokyo on Wednesday the Nikkei 225 added 0.4 percent to 14,500.26, while the Topix index closed flat at 1,475.42. While export-focused sectors seemed to find gains, domestic stocks were more likely to be losers for the day.

    The steel sector was higher. While JFE ended the day where it started, at ¥4,480, Japan Steel Works added 1.3 percent to ¥640 and Nippon Steel gained 3.5 percent to ¥444 on the news that it will maintain its current alliance with Arcelor.

    Consumer electronics stocks were mixed. Canon dropped 1 percent to ¥5,240 on the news that Dell will soon enter the Japanese color printer market with products at half the current price. On the other hand, Matsushita Electric Industrial was up 0.7 percent to ¥2,100 and Sony gained 1.1 percent to ¥4,670.

    The automobile manufacturing sector was also mixed on the session. While Honda was 0.3 percent higher to ¥3,480 and Toyota added 0.9 percent to ¥870, Nissan dropped 0.2 percent to ¥1,162.

    In the machinery sector, Komatsu gained 1.7 percent to ¥2,030. Industrial robots manufacturer Fanuc, meanwhile, added 3.1 percent to ¥9,280.

    The banking sector was down 0.7 percent as a whole. Mizuho dropped 0.4 percent to ¥928,000, while Mitsubishi UFJ declined by 0.7 percent to ¥1,510,000 and Sumitomo Mitsui fell by 0.8 percent to ¥1,200,000.

    Airlines did even worse, losing 3.6 percent as a sector. All Nippon Airways was down 1.9 percent to ¥412, while Japan Airlines dropped 6.8 percent to ¥220 after it altered the allotment of a new share offering.





    July 10, 2006

    Carmakers mixed in Tokyo

    Filed under: Companies, Sony, Mizuho, Canon, Toyota, Matsushita Electric Industrial, Advantest, Tokyo Electron, Nissan, Mitsubishi UFJ, Komatsu, Aiful, Takefuji, Acom, Promise, Mazda, Fanuc

    Equities markets in Tokyo were up substantially on Monday, with the Nikkei 225 up 1.6 percent to 15,552.81 and the Topix index 1.3 percent higher to 1,594.07.

    In the technology sector, chip-making and testing equipment companies saw gains. Advantest was up 2.7 percent to ¥12,130, while Tokyo Electron gained 3.3 percent to ¥8,250.

    Electronics companies were also up on the session, with Sony adding 1.2 percent to ¥5,050, Matsushita Electric Industrial up 1.5 percent to ¥2,390, and Canon advancing by 2.3 percent to ¥5,790.

    Automobile manufacturers were mixed on currency concerns. Mazda and Toyota gained 1 percent to ¥777 and 1.2 percent to ¥6,050 respectively, while Nissan declined by 0.1 percent to ¥1,238.

    The machinery sector was up 1.2 percent as a whole, with Komatsu adding 1.3 percent to ¥2,295. Industrial robots maker Fanuc, meanwhile, gained 4.7 percent to ¥10,120.

    Banks benefited from the news that lending was up this month at a rate it hasn’t seen in five years. Mizuho advanced by 3.2 percent to ¥998,000 and Mitsubishi UFJ added 5.2 percent to ¥1,630,000. Also helping banks was the expectation that the Bank of Japan will bring an end to zero interest rates when it meets later this week.

    Consumer finance companies saw losses during the session, again on interest rate issues, after the Liberal Democratic Party proposed new rules last week which would drop the maximum allowable interest rate on their loans from 29.2 percent to between 15 and 20 percent. Acom fell 1.8 percent to ¥5,870, while Promise dropped 2.5 percent to ¥5,500, Takefuji declined by 4 percent to ¥5,820, and Aiful was down 7.8 percent to ¥4,840.





    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.





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  • Tokyo Market News copyright 2005 Central Consultants