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 13, 2007

    Tokyo equities mixed on session

    Filed under: Companies, Astellas Pharma, Mitsubishi UFJ, Takeda, Sumitomo Mitsui, Mandarake

    Tokyo’s markets were mixed on Thursday, a day after Prime Minister Shinzo Abe resigned, citing health reasons.

    Mr. Abe was hospitalized on Thursday for an undisclosed ailment.

    While the Nikkei 225 gained 0.15 percent to 15,821.19, the Topix index dropped 0.35 percent to 1,522.87 and the Mothers market was down 3.03 percent to 628.83.

    Stocks with ties to Mr. Abe’s most likely successor, Taro Aso, gained early in the session but were down by the end of the day.

    Aso Foam Crete (TYO: 1730), a construction firm run by Mr. Aso’s family, was up 19 percent early but ended the session 3.8 percent lower to ¥375.

    Used book store Mandarake (TYO: 2652), which had been much higher Wednesday on the strength of Mr. Aso’s reputed fondness for comic books, was 6 percent lower Thursday to ¥410,000.

    More seriously, the banking sector was lower on reports that the government will cut its appraisal of the nation’s economy for September based on weak industrial production.

    Mitsubishi UFJ (TYO: 8306; NYSE: MTU) was down 2 percent to ¥1 million, while Sumitomo Mitusi (TYO: 8316) dropped 3.4 percent to ¥790,000.

    The pharmaceuticals sector, however, was higher on the session.

    Takeda Pharmaceutical (TYO: 4502) added 1.9 percent to ¥7,980, while Astellas Pharma (TYO: 4503) gained 2.7 percent to ¥5,340.

    Both drug makers have spent billions of yen so far this year on stock buybacks and are expected to spend even more.





    January 18, 2007

    Mothers market gains 4 percent on session

    Filed under: Companies, Mizuho, Mitsui Fudosan, Komatsu, Sumitomo Realty & Development, Takeda, Mitsubishi Chemical, Tanabe Seiyaku

    Tokyo equities markets were higher on Thursday in the wake of the decision by the Bank of Japan to leave interest rates at their current level for the time being. The Nikkei was 0.6 percent higher to 17,370.93, while the Topix index added 0.5 percent to 1,715.17. The Mothers market of small and mid-cap stocks gained 4 percent to 1,177.77.

    Banks, which had been anticipating a rate hike, only declined slightly in its absence. This was likely due to the fact that by Wednesday it had become clear that a higher interest rate was not to be forthcoming this month. Mizuho Financial dropped 0.2 percent to ¥896,000.

    The real estate sector, which figured to be hurt by higher interest rates, added 1.4 percent as a whole. Mitsui Fudosan gained 1.4 percent to ¥3,010, while Sumitomo Realty & Development was 2.4 percent higher to ¥3,920.

    The yen was weaker after the bank’s decision helped the machinery sector, which is largely focused on exports, 0.7 percent higher. Construction machinery manufacturer Komatsu added 1.2 percent to ¥2,455.

    The pharmaceuticals sector was higher on merger rumors. Tanabe Seiyaku gained 5.4 percent to ¥1,716 after it was learned that it is talking with Mitsubishi Pharma. Mitsubishi is a division of Mitsubishi Chemical, which added 5.6 percent to ¥815. Takeda Pharmaceutical was 1.8 percent higher to ¥8,020.





    September 26, 2006

    Topix index drops 0.7 percent

    Filed under: Companies, Toyota, Mitsui OSK, Nippon Yusen, Kawasaki Kisen, Astellas Pharma, Honda, Sumitomo Metal Industries, Softbank, Japan Petroleum, Takeda, JAL, All Nippon Airways, Fuji Electric

    The Tokyo equities markets were lower on Tuesday, falling on declines in export-focused stocks. Transport stocks were also lower after an overnight rise in crude oil prices. The Nikkei 225 was 0.5 percent lower to 15,557.45, while the Topix index dropped 0.7 percent to 1,549.41.

    Oil and commodities stocks were higher on the gains in the prices of oil and other commodities. In the oil sector, Japan Petroleum Exploration added 1.2 percent to ¥6,850 and Inpex gained 2.1 percent to ¥907,000. Sumitomo Metal Mining was 0.8 percent higher to ¥1,457.

    The shipping sector dropped 2.8 percent as a whole on the rise in oil prices. Nippon Yusen dropped 2.1 percent to ¥708, while Mitsui OSK was 3.1 percent lower to ¥832 and Kawasaki Kisen fell 3.8 percent to ¥739. Elsewhere in transport related stocks, airlines were lower as well. All Nippon Airways declined 1.5 percent to ¥469, while Japan Airlines dropped 2.6 percent to ¥225.

    Carmakers were also lower, with Honda and Toyota each falling 0.8 percent, to ¥3,800 and ¥6,240 respectively.

    The pharmaceuticals sector saw losses on the day. Takeda fell 1.5 percent to ¥7,210, while Astellas dropped 1.7 percent to ¥4,590.

    Some individual stocks saw gains, however. Softbank, with interests in telecommunications and the internet, was 3.8 percent higher to ¥2,190. Fuji Electric added 3.3 percent to ¥587 after Nikko Citigroup initiated coverage with a target share price of ¥800.





    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 31, 2006

    Oji takeovero fo Hokuetsu seen as less likely

    Filed under: Companies, Mitsui Fudosan, NTT, Hitachi, Hokuetsu Paper, Astellas Pharma, Mitsubishi Estate, Toshiba, Chugai Pharmaceutical, Elpida Memory, Oji Paper, Fujitsu, Takeda, Daiichi Sankyo

    Both the Nikkei 225 and the Topix index saw gains in Tokyo on Monday. The Nikkei added 0.7 percent to 15,456.81, while the Topix was up 0.8 percent to 1,572.01. Both domestic and export-focused sectors saw gains.

    Not every sector was up, however. With chances of consolidation in the paper sector decreasing, Oji Paper and Hokuetsu Paper Mills were down on the day. Oji dropped 0.2 percent to ¥665, while Hokuetsu was 1.5 percent lower to ¥790.

    The pharmaceuticals sector also saw losses. Astellas dropped 1.3 percent to ¥4,560. Chugai and Daiichi Sankyo fell by 1.9 percent each, with Chugai closing at ¥2,365 and Daiichi Sankyo ending the session at ¥3,150. Takeda was 2.4 percent lower to ¥7,400 on the news that a new cancer drug that it is developing has not shown the usefulness that had been hoped for.

    The properties sector showed gains in anticipation of land prices having gone up when the National Tax Agency reports new data. Mitsubishi Estate added 1.9 percent to ¥2,375, while Mitsui Fudosan, Japan’s biggest mortgage lender, gained 2.1 percent to ¥2,435 and NTT Urban Development was 4.1 percent higher to ¥864,000.

    Technology-related companies also saw advances on the day. Hitachi and Toshiba each gained 1.4 percent to ¥734 and ¥741 respectively. Elpida Memory added 2.2 percent to ¥4,590, while computer maker Fujitsu was up by 3.6 percent to ¥889.





    June 19, 2006

    Gains in pharma, seafood limit Tokyo losses

    Filed under: Companies, Sony, Mizuho, Hitachi, Advantest, Mitsubishi UFJ, Komatsu, Chugai Pharmaceutical, Mitsubishi Materials, Takeda, Nippon Suisan, Maruha, Daiichi Sankyo, Ishikawa Seisakusho

    The Tokyo equities markets were lower on Monday as export-reliant sectors saw declines on the news that China’s central bank is cutting back on lending. The announcement spurred worries that China’s economy is slowing down. The Topix index was also hurt by declines in the banking sector.

    The Nikkei 225 was 0.1 percent lower to 14,860.35, while the Topix dropped 0.5 percent to 1,527.66. Meanwhile, the Mothers index of small and mid-cap stocks closed flat at 1,462.71.

    Among companies hit by the news from China were smelter Mitsubishi Materials, which dropped 3 percent to ¥458 and construction machinery manufacturer Komatsu, down 3.5 percent to ¥2,075.

    The electrical machinery sector dropped 0.5 percent as a sector. Among electronics companies, Hitachi was down 1.1 percent to ¥743, while Sony dropped 1.6 percent to ¥4,860. In the semiconductor sector, Advantest lost 2.6 percent to ¥10,750.

    Among banks, Mizuho lost 1.9 percent to ¥875,000, while Mitsubishi UFJ declined by 2 percent to ¥1,460,000.

    Pharmaceuticals and seafood companies, however, saw gains on the day. Strong export sales in the seafood sector saw Nippon Suisan add 3.1 percent to ¥589 and Maruha gain 3.5 percent to ¥325.

    The pharmaceuticals sector was up 2.3 percent as a whole. Takeda added 1.7 percent to ¥6,730, Chugai was up 3.4 percent to ¥2,280, and Daiichi Sankyo gained 6.1 percent to ¥2,890.

    Ishikawa Seisakusho, which manufactures defence products in addition to textiles, added 17.7 percent on the day to ¥166 as suspicions rose that North Korea is preparing to test a missile in the near future.





    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