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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    September 27, 2007

    Nikkei closes at six-week high

    Filed under: Companies, Mizuho, Mitsui Fudosan, Daiwa Securities, Nomura, Resona, Sumitomo Realty & Development, Aiful, Takefuji, Promise, Japan Tobacco, Sumitomo Mitsui, Suruga Bank Ltd

    Tokyo’s markets were higher on Thursday, as the Nikkei 225 had its highest close in a month and a half with a gain of 2.41 percent to 16,832.22.

    The Topix index added 2.48 percent to 1,615.15 while the Mothers market was 5.52 percent higher to 720.5.

    Banks were higher on rumors that investor Warren Buffett is looking to buy a stake in Bear Stearns (NYSE: BSC), boosting investor confidence that the subprime crisis will not cripple the financial services sector.

    Among banks, Mizuho (TYO: 8411; NYSE: MFG) was up 4.78 percent to ¥658,000, while Resona Holdings (TYO: 8308) added 6.9 percent to ¥190,000.

    Sumitomo Mitsui (TYO: 8316) gained 7 percent to ¥891,000. Regional bank Suruga Bank Ltd (TYO: 8358) was up 11 percent to ¥1,402 after it said it is talking to Japan Post about a deal.

    Brokers were also higher, with Nomura Holdings (TYO: 8604; NYSE: NMR; SGX: N33) closing at ¥1,938 and Daiwa Securities (TYO: 8601) adding 8.6 percent to ¥1,114.

    The consumer finance sector also saw gains after Takefuji (TYO: 8564) was reported to be preparing results showing that it will cross over into profit this year after losing ¥481.2 billion last year.

    Takefuji was 16 percent higher to ¥2,155 after gaining the full amount allowed by the exchange in a session, while Aiful (TYO: 8515) and Promise (TYO: 8574) each gained 15 percent, to ¥1,909 and ¥2,850 respectively.

    In the real estate sector, Deutsche Bank (FWB: DBK; NYSE: DB) raised its recommendations on both Mitsui Fudosan (TYO: 8801; NAS: MDSFF) and Sumitomo Realty & Development (TYO: 8830) from “hold” to “buy”.

    Mitsui Fudosan was 7.7 percent higher to ¥3,210, while Sumitomo was up 7.9 percent to ¥4,090.

    Elsewhere, Japan Tobacco (TYO: 2914) added 4.5 percent to ¥634,000 on a report out of London that it will bid on Turkey’s state-owned cigarette maker, Tekel.





    August 27, 2007

    Tobacco sector higher on cost-cutting news

    Filed under: Companies, Toyota, Honda, Resona, Yahoo Japan, Japan Tobacco, Sumitomo Mitsui

    Tokyo equities markets gained slightly Monday as the Nikkei 225 added 0.32 percent to 16,301.39, the Topix index gained 0.12 percent to 1,587.76 and the Mothers market of small and mid-caps was up 0.59 percent to 731.08.

    The appointment of a new Finance Minister seemed to have little effect on the markets.

    In the tobacco sector, Japan Tobacco (TYO: 2914) gained 3.4 percent to ¥609,000 after it said over the weekend that it will cut costs by consolidating overseas plants.

    Among internet companies, Yahoo Japan (TYO: 4689) added 3.5 percent to ¥40,000 on an upgrade to “overweight” from JP Morgan Chase (TYO: 8634; NYSE: JPM).

    Carmakers also made gains, with the sector as a whole advancing by 0.8 percent.

    Toyota Motor (TYO: 7203.T; NYSE: TM; LSE: TYT) was up 0.6 percent to ¥6,700, while Honda Motor (TYO: 7267; NYSE: HMC) added 2.4 percent to ¥3,790.

    Banks did not do as well. Sumitomo Mitsui (TYO: 8316) dropped 0.9 percent to ¥919,000, while Resona Holdings was down 1.3 percent to ¥237,000 after both banks had gains of over 2 percent earlier in the session.





    March 12, 2007

    Real estate sector sees gains

    Filed under: Companies, Mitsui Fudosan, Matsushita Electric Industrial, Kyocera, KDDI, Sumitomo Realty & Development, Japan Tobacco, Kyoei Tanker

    The Tokyo equities markets were higher on Monday as the yen weakened against the US dollar. The Nikkei 225 added 0.8 percent to 17,292.39, while the Topix index was 0.6 percent higher to 1,741.36.

    The real estate sector gained 1.8 percent as whole as it made progress in recovering from earlier losses. Mitsui Fudosan (TYO: 8801; NAS: MDSFF) added 1.5 percent to ¥2,470, while Sumitomo Realty & Development (TYO: 8830) was 2.9 percent higher to ¥4,960.

    In the telecommunications sector, KDDI (TYO: 9433) gained 1.6 percent to ¥920,000 on the news that it will use cables owned by East Japan Railway (TYO: 9020) to offer fibre-optic broadband services.

    Export sectors were helped by the weakness of the yen and indications that the US economy is remaining strong. Ceramics maker Kyocera (TYO: 6971; NYSE: KYO) and consumer electronics giant Matsushita Electric Industrial (TYO: 6752; NYSE: MC) each added 1.0 percent, to ¥10,540 and ¥2,410 respectively.

    Japan Tobacco (TYO: 2914) added 4.8 percent to ¥546,000 after shareholders of UK tobacco company Gallagher (LSE: GLH), voted on Friday to accept its sale to JT.

    Kyoei Tanker (TYO: 9130) was 4.7 percent lower after reports in the Japanese financial press that group recurring profits in the upcoming fiscal year could drop as much as 67 percent. Kyoei specializes in marine transport of oil products.





    December 18, 2006

    Tokyo Electric Power gains 2.1 percent

    Filed under: Companies, Sony, Nikko Cordial, Honda, Toshiba, Tokyo Electric Power, Japan Tobacco

    The Nikkei 225 managed to add 0.3 percent to 16,962.11 on Monday, its highest close in seven months, and the Topix index gained 0.5 percent to 1,665.32 on Monday as investors waited for Tuesday’s decision by the Bank of Japan on interest rates.

    In the utilities sector, Tokyo Electric Power was 2.1 percent higher to ¥3,800 as investors used it as a safe place to put their money while they wait to see what will happen with interest rates. Utilities are seen as safe because demand isn’t tied to how the rest of the economy is performing.

    Export-focused stocks also saw gains on the day after good news on consumer prices emerged from the United States on Friday. In the automobile manufacturing sector, Honda added 2.6 percent to ¥4,360. Meanwhile, Sony gained 2.2 percent to ¥5,160.

    Toshiba was up 1.3 percent to ¥780 on the news that its Westinghouse division has been awarded a contract to build four nuclear reactors in China.

    Loser on the session included Japan Tobacco, which dropped 5.2 percent to ¥566,000 after last weeks gains after it said it will bid for UK tobacco company Gallaher. Also dropping was securities company Nikko Cordial, which fell 4.8 percent to ¥1,419 after weekend reports that the Japanese Securities and Exchange Surveillance Commission is looking at the company for possible manipulation of its earnings in its fiscal year 2004.





    December 15, 2006

    Japan Tobacco confirms talks with Gallaher

    Filed under: Companies, Sony, Mitsui OSK, Nippon Yusen, Inpex, Daiwa Securities, Nomura, Aeon, Japan Tobacco, All Nippon Airways

    After a new Tankan report on business sentiment from the Bank of Japan came out about as expected, the Tokyo equities markets were up on Friday. The Nikkei 225 added 0.5 percent to 16,914.31, while the Topix index gained 0.3 percent to 1,657.40. Even though the Tankan figures were seen as positive, analysts are still convinced that the Bank will decline to raise interest rates when it meets next week.

    In the tobacco sector, Japan Tobacco was 3.1 percent higher to ¥597,000 after it said it is talking to UK company Gallaher about a purchase.

    The electronics sector added 0.5 percent as a whole, and Sony gained 1.6 percent to ¥5,050.

    Domestically, the retail sector was up 0.4 percent, while Japan’s largest retailer, Aeon, was 1 percent higher to ¥2,575.

    The securities sector also saw gains. Nomura Holdings added 1.2 percent to ¥2,165, while Daiwa Securities Group was up 1.4 percent to ¥1,336.

    Transport sectors were driven lower by an increase in crude oil prices. Domestic airline All Nippon Airways dropped 0.9 percent to ¥433. Among shippers, Mitsui OSK was 0.5 percent lower to ¥1,110 and Nippon Yusen fell 1.1 percent to ¥847.

    The rise in oil prices was good news for Inpex, however, which added 2.1 percent on the session to ¥1,010,000.





    December 14, 2006

    Small-caps index adds 1.7 percent

    Filed under: Companies, Sony, Canon, Matsushita Electric Industrial, Pioneer, Japan Tobacco

    Export-related stocks were higher on Thursday in Tokyo as the yen continued to stay weak and as new data was released in the United States that showed retail sales rose 1 percent in November. The Nikkei 225 was 0.8 percent higher to 16,829.20, its highest close in seven months, while the Topix index also ended with a gain of 0.8 percent, to 1,651.85. Meanwhile, the Mothers index of small and mid-caps gained 1.7 percent to close at 1,144.42.

    The gains in US sales helped the electronics sector. While Pioneer dropped 1.8 percent to ¥1,633 on a downgrade from “buy” to “neutral” from Nomura Securities, others in the sector benefited from the new sales numbers. Matsushita Electric Industrial was 0.6 percent higher to ¥3,345. Canon gained 1.7 percent to ¥6,650. Sony added 1.8 percent, helped along by its insistence that it would meet its target of shipping 3 million PlayStation 3 game consoles globally by the end of the month and that 6 million units will be shipped by the end of March.

    In the tobacco sector, no news was not necessarily good news for investors. There was nothing new on a possible bid by Japan Tobacco for UK tobacco company Gallaher. This lack of fresh information sent Japan Tobacco 2.4 percent lower to ¥579,000 just a day after reaching its highest share price ever.





    December 11, 2006

    Japan Tobacco adds 2.9 percent on bids talk

    Filed under: Companies, Nippon Steel, Toyota, Honda, JFE, Sumitomo Metal Industries, Aiful, Takefuji, Acom, Japan Tobacco, Nintendo, Kobe Steel

    The Tokyo equities markets saw gains on Monday, despite investor caution ahead of a decision on US interest rates by the US Federal Reserve and the release of the latest Tankan survey from the Bank of Japan, both due soon. Also limiting gains was a significant decline in the consumer finance sector. The Nikkei 225 and the Topix index each added 0.7 percent on the session, to 16,527.99 and 1,627.97 respectively.

    The consumer finance sector’s declines came after UBS forecast that lending would be down b y 30 percent in the next three years. Aiful dropped 3.4 percent to ¥3,660, while Takefuji fell 4 percent to ¥4,530 and Acom was 6 percent lower to ¥4,260.

    In the tobacco sector, Japan Tobacco added 2.9 percent to ¥566,000, the third session of gains in a row for the company, as talk continued concerning its bid for UK tobacco company Gallaher.

    Consolidator rumors sent the steel sector higher on the session even though some analysts see a successful hostile takeover of any Japanese steel company as only a slight possibility. Kobe Steel added 2.3 percent to ¥402, while Sumitomo Metal Industries gained 3.2 percent to ¥482. JFE was 3.8 percent higher to ¥5,720 and Nippon Steel was up 4 percent to ¥570.

    The automobile manufacturing sector saw gains on a weakening yen. Toyota gained 1.4 percent to ¥7,140, while Honda Motor added 1.7 percent to ¥4,140.

    Meanwhile the Osaka-listed games company Nintendo added 3.5 percent to ¥28,650 on data showing that sales of its Wii video game console are booming in the US.





    May 1, 2006

    Little movement in Tokyo markets

    Filed under: Companies, Sony, Mitsui Fudosan, Mitsubishi Estate, Nomura, Toshiba, Tokyo Electric Power, Japan Tobacco, Takeda

    The Tokyo equities indexes saw little movement on Monday, while some individual share prices showed distinct movement after a number of companies reported earnings results on Friday. The Nikkei added 0.1 percent by the close of trade on Monday to 16,925.71. The Topix index was close to unchanged at 1,717.17.

    The real estate sector was down by 1.7 percent on the day after its largest company, Mitsui Fudosan, reported its full-year results by declaring a record net profit. Despite those profits, its forecast of a lower than expected 11 percent net profit for the 2006/2007 fiscal year bothered investors enough to send Mitsui’s share price down 2.2 percent on the day to ¥2,495. Mitsubishi Estate was also down, by 1.4 percent to ¥2,455.

    The electronics sector was mixed. Toshiba added 3.4 percent to ¥750 on a 70 percent increase in net profits in the 2005/2006 fiscal year. Goldman Sachs issued an upgrade from “inline” to “outperform” on Toshiba’s shares. Sony, however, dropped 4.5 percent to ¥5,460 on top of Friday’s 5.1 percent decline after Thursday’s weak profits forecast.

    Japan Tobacco lost 2.8 percent to ¥445,000 on a prediction that operating profits in 2006/2007 will be down.

    Even though it reported record net profits in 2005/2006, securities house Nomura dropped 1.9 percent to ¥2,525, while the sector as a whole dropped by 1.8 percent.

    Gains came in the utilities and pharmaceuticals sectors. Tokyo Electric Power gained 3.2 percent to ¥3,020. Meanwhile Japan’s largest pharmaceuticals company, Takeda, added 1.7 percent to ¥7,080.





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  • Tokyo Market News copyright 2005 Central Consultants