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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    October 15, 2007

    Carmakers lower on broker comment

    Filed under: Companies, Toyota, Advantest, Tokyo Electron, Mitsui Mining, Honda, Toshiba, Sumitomo Metal Industries, Nippon Mining, Rohm

    Tokyo’s markets were mixed on the session Monday.

    The Nikkei 225 added 0.16 percent to 17,358.15, but the Topix index dropped 0.12 percent to 1,657.44 and the Mothers market was down 1.57 percent to 867.62.

    Carmakers were lower after HSBC Holdings said that Toyota (TYO: 7203.T; NYSE: TM; LSE: TYT) will likely see profits weaken in the second half of its current fiscal year as the US economy slows down.

    Toyota was 1.7 percent lower to ¥6,450, while Honda (TYO: 7267; NYSE: HMC) dropped 2 percent to ¥3,930.

    Miners were higher.

    Nippon Mining (TYO: 5016), which has interests in oil, coal and non-ferrous metals, added 1.6 percent to ¥1,196, while Sumitomo Metal Mining (TYO: 5713) gained 2.3 percent to ¥2,915 and Mitsui Mining (TYO: 5706) was up 4.2 percent to ¥2,915.

    In the semiconductors sector, chipmakers were lower but makers of equipment related to making and testing chips saw gains.

    Rohm (TYO: 6963) was down 0.7 percent to ¥10,120 and Toshiba (TYO: 6502; LSE: TOS) dropped 1.6 percent to ¥1,036 after Nomura dropped its recommendation on the sector from “bullish” to “neutral”.

    However Tokyo Electron (TYO: 8035) was up 2.9 percent to ¥7,510 while Advantest (TYO: 6857; NYSE: ATE) added 6.4 percent to ¥3,850.





    October 12, 2007

    Tech stocks decline in Tokyo

    Filed under: Companies, Sony, Tokyo Electron, Fast Retailing, Nikon, Dainippon Screen Manufacturing

    Tokyo’s markets joined the rest of Asia’s equities markets in declines on Friday.

    The Nikkei 225 was 0.73 percent lower to 17.331.17, while the Topix index dropped 1.08 percent to 1,659.48 and the Mothers market of small and mid-caps fell 0.04 percent to 881.49.

    Technology-related shares were lower.

    Sony (TYO: 6758; NYSE: SNE) dropped 4.3 percent to ¥5,530 after a report showing that profits were down in its joint venture with Ericsson (NAS: ERIC) to make mobile phones.

    Businesses related to the manufacture of semiconductors were lower on downgrades from Goldman Sachs.

    Tokyo Electron (TYO: 8035) dropped 1.2 percent to ¥7,300 after its rating was dropped from “buy” to “neutral”.

    Nikon (TYO: 7731), which makes machines that put circuitry on silicon wafers, was down 8 percent to ¥3,910 on a downgrade from “neutral” to “sell”, while chip making equipment maker Dainippon Screen (TYO: 7735) fell 8.6 percent to ¥692 after being downgraded from “buy” to “sell”.

    In the retail sector, Fast Retailing (TYO: 9983) was 6 percent lower to ¥7,060 after full-year results showed that net income was down by 21 percent in the year ending 31 August, less than had been predicted earlier.





    October 2, 2007

    Banks see gains on credit optimism

    Filed under: Companies, Sony, Mizuho, Advantest, Tokyo Electron, Mitsubishi UFJ, Elpida Memory, Sumitomo Mitsui

    Tokyo’s markets also saw gains.

    The Nikkei 225 was up 1.19 percent to 17,046.78, ending the session above 17,000 for the first time in nearly two months.

    The Topix index was 1.48 percent higher to 1,639.79, while the Mothers market of small and mid-caps added 2.83 percent to 756.29.

    The gains came on advances in the banking sector after US bank Citigroup (NYSE: C) said that earnings will return to “normal” in the current quarter.

    Also helping gains was a prediction by former US Federal Reserve chairman Alan Greenspan that the credit slump could be over, and new data from the US signaled a possible further cut in interest rates.

    Among banks, Mizuho (TYO: 8411; NYSE: MFG) added 2.6 percent to ¥661,000 while Sumitomo Mitsui (TYO: 8316) gained 3.9 percent to ¥915,000 and Mitsubishi UFJ (TYO: 8306; NYSE: MTU) was up 5.6 percent to ¥1,114.

    Elsewhere, electronics giant Sony (TYO: 6758; NYSE: SNE) was 4.3 percent higher to ¥5,890 on Monday’s announcement that the initial public offering of its insurance division had brought in ¥320 billion as well as on the news that it will partner with the Qimonda unit of Infineon (FWB: IFX; NYSE: IFX) to develop DRAM chips for cameras and mobile phones.

    Chipmaker Elpida (TYO: 6665) dropped 3.7 percent to ¥3,940 on concerns that it could lose market share to the new partnership.

    On the other hand, companies that make chip-testing equipment saw gains.

    Tokyo Electron (TYO: 8035) was 4.3 percent higher to ¥7,560 while Advantest (TYO: 6857; NYSE: ATE) added 5 percent to ¥3,750.





    September 20, 2007

    Consumer finance sector lower on forecast

    Filed under: Companies, Mitsui Fudosan, Advantest, Tokyo Electron, Sumitomo Realty & Development, Aiful, Acom, Promise, UFJ Nicos

    Equities markets were mixed in Tokyo on Thursday, with the real estate sector higher but the consumer finance and semiconductors sectors in decline.

    The Nikkei 225 was 0.2 percent higher to 16,413.79, but the Topix index retreated slightly and was down 0.05 percent to 1,566.84.

    The Mothers market of small and mid-caps also declined, falling 0.81 percent to 628.23.

    The consumer finance sector was down substantially after UFJ Nicos (TYO: 8583) said that instead of a profit it would lose ¥100 billion this fiscal year.

    Nicos, which is part of Mitsubishi UFJ Financial Group (TYO: 8306; NYSE: MTU), was 13.4 percent lower to ¥241.

    Elsewhere in the sector Aiful (TYO: 8515) dropped 11 percent to ¥1,732, while Acom (TYO: 8572) was down 7.8 percent to ¥2,560 and Promise (TYO: 8574) fell 4.5 percent to ¥2,655.

    The semiconductors sector also saw declines after analysts at Dramexchange said that the price of computer memory will decline next quarter due to oversupply.

    Chip-making equipment maker Advantest (TYO: 6857; NYSE: ATE) was 4.7 percent lower to ¥3,690, while Tokyo Electron (TYO: 8035) dropped 4.9 percent to ¥7,340.

    The real estate sector was higher on a government report that said commercial land prices were higher in the year ending in June.

    Mitsui Fudosan (TYO: 8801; NAS: MDSFF) gained 1.6 percent to ¥2,860, while Sumitomo Realty & Development (TYO: 8830) added 1.7 percent to ¥3,610.





    July 18, 2007

    Retailers decline in Tokyo

    Filed under: Companies, Isetan, Tokyo Electron, Fast Retailing, Tokyo Electric Power, Aeon, Pioneer, Nikon

    In Tokyo on Wednesday the Nikkei 225 was 1.1 percent lower to 18,015.58, while the Topix index also dropped 1.1 percent, to 1,758.65.

    The declines came from both domestically-focused and export-focused sectors.

    On the domestic side, the retail sector was down 1.9 percent as a whole, with several retailers doing even worse than that.

    Aeon (TYO: 8267) dropped 2.1 percent to ¥2,055, while department store chain Isetan (TYO: 8238; SGX: I15) fell 2.2 percent to ¥1,922.

    The worst performer on the Nikkei was Fast Retailing (TYO: 9983), which was down 4.4 percent to ¥7,280.

    In the utilities sector, Tokyo Electric Power (TYO: 9501) was 4 percent lower to ¥3,600 on reports that a survey of earthquake damage in its Kashiwazaki-Kariwa nuclear power plant had found 50 separate problems.

    After US semiconductors manufacturer Intel (NAS: INTC; SEHK: 4335) reported margins at the low end of predictions in the second quarter, chipmaker Tokyo Electron (TYO: 8035) dropped 1 percent to ¥8,930.

    The electronics sector was mixed on broker recommendations.

    While Nikon (TYO: 7731) added 0.5 percent to ¥3,730 on a Morgan Stanley (NYSE: MS) upgrade from “overweight” to “equal-weight”, Pioneer was 3.3 percent lower to ¥1,645 after Credit Suisse (NYSE: CS; SWX: CSGN) cut its rating from “neutral” to “underperform”.





    July 13, 2007

    Semiconductors sector recovers

    Filed under: Companies, Sony, Matsushita Electric Industrial, Advantest, Tokyo Electron, Fast Retailing, Nintendo, Shin-Etsu Chemical, Dainippon Screen Manufacturing

    The Tokyo markets also saw significant gains on Friday as the Nikkei 226 added 1.42 percent to 18,238.95 and the Topix index gained 1.14 percent to 1,783.2.

    The markets were aided by a recovery in the semiconductors sector that was spurred by comments from Korean chipmaker Samsung (KS: 005930) that chip prices will go up in the third quarter of the year.

    It was also helped by a report from silicon wafer maker Shin-Etsu (TYO: 4063) that profits in its fiscal first quarter were up by 28 percent on strong sales.

    Shin-Etsu added 3.9 percent to ¥9,500.

    Tokyo Electron (TYO: 8035) was 3.2 percent higher to ¥9,090, while chip-testing equipment maker Advantest (TYO: 6857; NYSE: ATE) added 2.1 percent to ¥5,410 and Dainippon Screen Manufacturing, which makes equipment related to semiconductor manufacture, gained 2.3 percent to ¥943.

    In the electronics sector, Sony (TYO: 6758; NYSE: SNE) was 0.9 percent higher to ¥6,410, while Matsushita Electric Industrial (TYO: 6572; NYSE: MC) added 1.3 percent to ¥2,360 and Nintendo (TYO: 7974; NAS: NTDOY; FWB: NTO) gained 1.5 percent to ¥50,400 on comments from the company’s president that its Wii games console could sell more than Sony’s PlayStation 2.

    Decliners on the day included Fast Retailing (TYO: 9983). The clothing retailer was 2.7 percent lower to ¥8,000 on a third decline in its full-year guidance.

    Japanese markets will be closed Monday for the Maritime Day Holiday.





    July 12, 2007

    Semiconductors down on drop in orders

    Filed under: Companies, Toyota, Advantest, Tokyo Electron, Nissan, McDonald's Holdings Japan, Doutor Coffee, Nippon Restaurant System

    Tokyo equities markets were lower on Thursday as the Nikkei 225 dropped 0.36 percent to 17,984.14 and the Topix index was 0.3 percent lower to 1,763.06.

    The semiconductors sector was lower, with Tokyo Electron (TYO: 8035) down 2 percent to ¥8,810 after it said that orders were down significantly in the most recent quarter.

    In addition, chip-testing equipment maker Advantest dropped 1.9 percent to ¥5,300.

    Other declines came among restaurant operators after the announcement that McDonald’s Holdings Japan (TYO: 2702) will open 15 cafes during the summer.

    The new cafes are expected to provide competition to Doutor Coffee (TYO: 9952), which dropped 3 percent to ¥2,090.

    Nippon Restaurant System (TYO: 2775), getting ready to merge with Doutor, fell 3.3 percent to ¥3,530, but McDonald’s Japan added 0.1 percent to ¥2,000.

    Carmakers were mixed on the session. Nissan Motor (TYO: 7201) was 1.5 percent higher to ¥1,324, while Toyota Motor (TYO: 7203.T; NYSE: TM; LSE: TYT) dropped 0.4 percent to ¥7,630.





    February 1, 2007

    Honda declines on lower profits

    Filed under: Companies, Sony, Advantest, Tokyo Electron, Nikko Cordial, Sharp, Honda, Fujitsu

    Despite mixed earnings reports, the Tokyo equities markets were up Thursday. The Nikkei 225 added 0.8 percent to 17,519.50, while the Topix index gained 1 percent to 1,738.58.

    The advances came even though scandal-ridden Nikko Cordial dropped a further 15.5 percent to ¥1,000 on investor concerns that it could be delisted in consequence of its accounting improprieties.

    Electronics-related sectors were mixed. Consumer electronics manufacturers were higher. Sharp added 1.5 percent to ¥2,085 after it revealed that its operating profits were up 13 percent in the quarter. Sony was up 2 percent to ¥5,660 on an upgrade from “hold” to “buy” from Nikko Citigroup.

    On the other hand, Tokyo Electron dropped 1.2 percent to ¥8,430 and Advantest was 2.8 percent lower to ¥5,870. These declines came after Fujitsu fell 5 percent to ¥860 on a disappointing quarterly report. It blamed its drop in profits on the price of microchips and hard drives, and said that it foresees further declines in the future.

    Honda Motor was also lower on profits, as it reported that profits were below expectations and operating profits were steady in its fiscal third quarter. Honda’s 0.4 percent decline to ¥4,710 was an anomaly in an automobile manufacturing sector that added 0.4 percent on the session.





    January 19, 2007

    Consumer finance sector higher on BofJ decision

    Filed under: Companies, Mizuho, Mitsui Fudosan, Advantest, Tokyo Electron, Mitsubishi UFJ, Sumitomo Realty & Development, Aiful

    The Tokyo equities markets were lower on Friday, with the Nikkei 225 down 0.4 percent to 17,310.44 and the Topix index 0.1 percent lower top 1,714.21.  The exception was the Mothers index of small and mid-cap stocks, which added 5.9 percent to 1,247.00 after a 4 percent gain on Thursday.

    The semiconductors sector was lower, with Tokyo Electron dropping 2.5 percent to ¥8,940.  Advantest fell 3.5 percent to ¥6,290.  They were affected by quarterly reports from US companies in the sector.

    Banks were also lower on the session, with the sector as a whole lower by 1.1 percent in the wake of Thursdays decision by the Bank of Japan to hold interest rates at 0.25 percent.  The banks could have benefited if rates had been increased, with the possibility that their loan margins might have gone up.  Mizuho Financial was 0.7 percent lower to ¥890,000, while Mitsubishi UFJ dropped 1.3 percent to ¥1.51 million.

    Consumer finance companies, on the other hand, saw gains, with Aiful up 4.4 percent to ¥4,020.  The sector was not looking forward to an interest rate hike, which would have increased their funding costs.

    The real estate sector also saw gains, with a 2.3 percent advance for the whole sector.  Mitsui Fudosan added 1.7 percent to ¥3,060, while Sumitomo Realty & Development was 4.1 percent higher to ¥4,080.





    January 17, 2007

    Real estate on the rise in Tokyo

    Filed under: Companies, Mitsui Fudosan, Sumitomo, NTT, Advantest, Tokyo Electron, Mitsubishi Estate, Mitsubishi UFJ, Komatsu, Sumitomo Realty & Development

    There were slight gains in the Tokyo equities markets on Wednesday as investors continue to hesitate ahead of the Bank of Japan’s interest rate decision, due Thursday. The Nikkei 225 added 0.3 percent to 17,261.35, while the Topix index was up 0.2 percent to 1,706.76.

    The banking sector was lower, dropping 1.1 percent as a whole. Sumitomo Trust & Banking matched the sector with a 1.1 percent decline, to ¥1,309. Mitsubishi UFJ held steady at ¥1,530,000.

    On the other hand, the real estate sector saw gains on the session. Mitsui Fudosan was 1.9 percent higher to ¥2,970, while Sumitomo Realty & Development added 2.1 percent to ¥3,830 and Mitsubishi Estate was up 2.9 percent to ¥3,240.

    With the yen weaker, some export-focused stocks were up, with the machinery sector gaining 1 percent. Construction equipment manufacturer Komatsu gained 1.5 percent to ¥2.425.

    The Japanese semiconductors sector was lower on the session after US chipmaker Intel said that its profits in the fourth quarter were down by 40 percent and warned that margins would not improve anytime soon. Tokyo Electron dropped 0.3 percent to ¥9,270, while Advantest fell 0.5 percent to ¥6,630.

    NTT DoCoMo was 0.5 percent lower to ¥190,000 after its spring line of mobile units failed to impress.





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