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 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.





    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.





    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.





    November 6, 2006

    Tokyo retail sector declines

    Filed under: Companies, Sony, SMFG, Toyota, Nissan, Sharp, Fast Retailing, Seven & I, Mazda, Marui Company

    The Tokyo markets were nearly even on Monday but ended mixed, with the Nikkei 225 0.1 percent higher to 16,364.76 but the Topix index ending 0.1 percent lower to 1,616.71. Much of the losses came in sectors that depend on exports, with investors worried that new data on unemployment will make the US Federal Reserve reluctant to let interest rates fall.

    The electronics sector was lower with Sony down 1.1 percent to ¥4,730, while Sharp dropped 1.2 percent to ¥2,070.

    Despite the concerns however, some carmakers were higher. While Nissan Motor fell 0.6 percent to ¥1,437, Toyota Motor added 1 percent to ¥7,030 on reports that it will become Japan’s first company to report that their operating profits for the year were above ¥2,000 billion. Mazda was also higher, gaining 1.9 percent to ¥809 after it reported operating profits that were 55 percent higher in the quarter.

    In domestic sectors, retailers saw losses on concerns that a decline in the US economy would hurt the Japanese economy as well. Seven & I dropped 1.6 percent to ¥3,610, while Fast Retailing fell 2.7 percent to ¥10,610 after investors were not happy with sales. Department store operator Marui Company, meanwhile, dropped 8.8 percent to ¥1,417 on a profit warning.

    Among banks, SMFG was 1.5 percent lower to ¥1.29 million.





    October 12, 2006

    Topix drops 0.5 percent

    Filed under: Companies, Sony, Mizuho, SMFG, Sumitomo, Canon, Mitsubishi UFJ, Sumitomo Metal Industries, Aiful, Takefuji, Jaccs

    Declines in the banking sector sent the Tokyo equities markets lower on Thursday, with the Nikkei 225 dropping 0.2 percent to 16,368.81 and the Topix index down 0.5 percent to 1,613.64. Consumer finance companies, however, saw gains on the session.

    In the consumer finance sector, Takefuji added 0.9 percent to ¥4,630, while Jaccs was 4.1 percent higher to ¥890 and Aiful advanced 4.4 percent to ¥4,020. Despite the gains in the sector, it was still down for the week.

    Canon dropped 2.4 percent to ¥6,510 on a downgrade from “buy” to “hold” from Deutsche Bank, making the cut on the basis of the printer and copier maker’s rising share price. Sony, however, was 1.8 percent higher to ¥4,590 after its joint project with Ericsson to make mobile phones posted much better than expected results in the third quarter.

    The banking sector saw declines on the session, falling 2.3 percent as a whole after UBS cut the ratings of several of Japan’s largest financial institutions. The reason given for the downgrades was that spreads between deposits and lending rates have not been improving quickly enough. SMFG dropped 1.6 percent to ¥1,240,000, while Mizuho Financial fell 2 percent to ¥906,000, Mitsubishi UFJ was 3.2 percent lower to ¥1,530,000, and Sumitomo Trust and Banking was off by 4.6 percent to ¥1,248.

    These declines were partly offset by a 1.3 percent rise in the non-ferrous metals sector after metals prices increased. Sumitomo Metal Mining added 3.5 percent to ¥1,463.





    September 21, 2006

    Nikkei adds 0.7 percent

    Filed under: Companies, Sony, Mizuho, SMFG, Toyota, Advantest, Mitsubishi UFJ, Aiful, Acom, Shin-Etsu Chemical

    Technology stocks and the banking sector were instrumental in a turnaround that saw the Tokyo equities markets gain on Thursday despite a slow start to the session. The Nikkei 225 added 0.7 percent to 15,834.23, while the Topix was 0.6 percent higher to 1,580.08.

    Semiconductors-related stocks were up on the day. Advantest gained 2.3 percent to ¥12,010, while Shin-Etsu Chemical, the world’s largest manufacturer of silicon wafers was 3.3 percent higher to ¥7,430 on a reiteration of a “buy” rating from UBS, which also raised Shin-Etsu’s target share price from ¥8,000 to ¥8,300.

    Other export-related stocks also gained, but not as vigorously. While automobile manufacturer Toyota gained 1.8 percent to ¥6,340 on an upgraded net profits outlook, entertainment and consumer electronics maker Sony added 0.6 percent to ¥4,860.

    Banks were 0.9 percent higher as a sector. Mitsubishi UFJ was 0.7 percent higher to ¥1,460,000, while Mizuho gained 1.1 percent to ¥899,000 and SMFG added 1.7 percent to ¥1,170,000.

    The consumer finance sector, however, saw further declines, as concerns persisted over attempts by the government to limit the amount of interest these non-bank lenders can charge for their loans. Acom was 3.5 percent lower on the session to ¥4,690, while Aiful dropped 5.5 percent to ¥4,330.





    August 31, 2006

    Nikkei 225 adds 1.7 percent

    Filed under: Companies, SMFG, Canon, Toyota, Hokuetsu Paper, Nissan, Mitsubishi UFJ, Konica Minolta, Oji Paper, Nippon Paper, Japan Airport

    Tokyo equities markets were higher on Thursday after the yen fell to yet another record low in relation to the euro. The yen fell in reaction to weak industrial output data. Export-focused stocks did especially well as investors believed that the euro’s strength against the yen would make Japanese goods more attractive to European shoppers. The Nikkei 225 added 1.7 percent to 16,140.76 and the Topix index was 1.4 percent higher to 1,634.46.

    Camera makers Canon and Konica Minolta were both higher, up 2.3 percent to ¥5,840 and 4.7 percent to ¥1,535 respectively. Carmakers also saw gains. Toyota Motor added 1.3 percent to ¥6,370, while Nissan Motor gained 2.4 percent to ¥1,334.

    Some domestic sectors were also up on the day. In the banking sector, for example, Mitsubishi UFJ was up 0.6 percent to ¥1,600,000 after announcing plans for expansion in Indonesia. SMFG advanced by 2.3 percent to ¥1,320,000.

    Reports that it will enter into an operations agreement with Nippon Paper Group, Hokuetsu Paper Mills added 2.3 percent to ¥725. Most analysts believe that such a deal will effectively block Oji Paper’s attempt to take over Hokuetsu. Oji was up 0.9 percent to ¥666, while Nippon Paper gained 3.3 percent to ¥436,000.

    Japan Airport, which runs Tokyo’s main domestic airport, added 7.9 percent to ¥1,438 on the announcement that the Japan Olympic Committee will put forward Tokyo as a candidate for host city for the 2016 Summer Olympics.





    May 26, 2006

    Tokyo banks see gains

    Filed under: Companies, Mizuho, SMFG, Hitachi, Toyota, Mitsubishi UFJ, Sumitomo Metal Industries, Dowa Mining, Tomy, Nintendo

    The Tokyo equities markets saw gains on Friday as both domestic and export-focused sectors were up on the day. The markets had seen substantial declines earlier in the week. The Nikkei 225 added 1.8 percent Friday to 15,970.76, while the Topix index was also 1.8 percent higher to 1,613.78.

    Banks were up 2.5 percent as a sector. Mitsubishi UFJ added 1.4 percent to ¥1,500,000, while Mizuho was up 2.5 percent to ¥917,000 and SMFG gained 2.7 percent to ¥1,160,000.

    Toymaker Tomy added 9.5 percent to ¥845 on a prediciton that it would make a profit this year. Meanwhile, game maker Nintendo was up 8.8 percent to ¥18,980 as Merrill Lynch reiterated its “buy” rating. Shares in Nintendo had fallen substantially on Thursday after news was released of a drop in its operating profit.

    Carmaker Toyota gained 1.5 percent on the day to ¥6,100. In another heavily export-focused sector, electronics company Hitachi added 2.2 percent to ¥776.

    Among miners, Sumitomo Metal Mining was up 4.8 percent to ¥1,527, while Dowa Mining added 2.9 percent to ¥1,083 as commodities prices rose again.





    March 16, 2006

    Tokyo markets down on interest rate concerns

    Filed under: Companies, Sony, SMFG, Mitsui Fudosan, Mitsubishi Estate, Mitsubishi UFJ, Resona, Seven & I, Sumitomo Realty & Development

    Japanese equities markets declined significantly on Thursday on a plunging real estate sector, as concerns about the possibility of interest rate hikes worried some investors even while some analysts said the concerns were misplaced.

    The Nikkei 225 fell 1.4 percent to 16,096.21, while the Topix index declined by 1.3 percent to 1,645.06.

    The real estate sector dropped 3.7 percent overall, falling to below its level at the end of 2005. Sumitomo Realty & Development dropped 6.6 percent to ¥2,510, further damaged by a downgrade from Mizuho Securities. Mitsui Fudosan was down 4.4 percent ¥2,150, while Mitsubishi Estate was down 3.2 percent to ¥2,455.

    Other domestic sectors were hit by interest rate concerns, as well. The banking sector dropped 2.3 percent overall, with Mitsubishi UFJ losing 2.4 percent to ¥1,650,000, SMFG down 3.2 percent to ¥1,220,000, and Resona declining by 3.1 percent to ¥374,000.

    Seven & I, which operates convenience and department stores, was down 3.2 percent to ¥4,280 as the retail sector as a whole lost 1.5 percent on the day.

    In export-reliant sectors, consumer electronics manufacturer Sony was down 1.8 percent to ¥5,370 when it said it will not release its PlayStation 3 game console until November.





    March 13, 2006

    Tokyo exporters, domestics rise on optimism

    Filed under: Companies, Sony, SMFG, Mitsui Fudosan, Tokyu Land, Mitsubishi UFJ, Nomura, Honda, Lawson, East Japan Railway, Mitsukoshi

    Tokyo’s equities markets were up on Monday as optimism about the economy sent shares in both export-dependent and domestic sectors higher on the day. The Nikkei 225 closed at 16,391.51, 1.5 percent higher and its highest close in over a month. The Topix index gained 1.7 percent to close at 1.674.66.

    Among domestics, the banking sector was up 1.5 percent on the day, while real estate gained 2.2 percent, securities were up 2.5 percent, and retailers grew by 1.7 percent as a whole. Land transport was up 2.5 percent.

    Within export-heavy sectors, automible manufacturing was up, including a 1.4 percent jump to ¥7,150 for Honda. Electrical machinery also gained, with Sony gaining 1.1 percent to ¥5,580.

    East Japan Railway, Japan’s largest railroad operator, was up 4.1 percent to ¥872,000.

    In the real estate sector, Mitsui Fudosan gained 1.7 percent to ¥2,640, while Tokyu Land was up 4.8 percent to ¥1,068.

    Among banks, Mitsubishi UFJ, gained 2.4 percent to ¥1,730,000, while SMFG rose by 1.6 percent to ¥1,290,000. In the securities sector Nomura, Japan’s largest house, advanced by 2.6 percent to ¥2,380.

    The retail sector was mixed on the day, with department store chain Mitsukoshi up 2.8 percent to ¥690 but convenience store operator Lawson down 0.9 percent to ¥4,470 on profit taking.





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  • Tokyo Market News copyright 2005 Central Consultants