Retailers Lift Trading Sentiment in Tokyo

Mayank Mehta
09 Apr, 2010
New York City

Stocks in Japan closed higher for the week. Positive outlook on the global economy and rising U.S. retail sales contributed to the sentiment. Fast Retailing and Seven & I Holdings Co raised their annual earnings estimates. For the week the benchmark index fell 0.7%, the first decline in two months.

[R]5:00 AM Tokyo, Japan – Stocks in Japan closed higher for the week. Positive outlook on the global economy and rising U.S. retail sales contributed to the sentiment. Fast Retailing and Seven & I Holdings Co raised their annual earnings estimates. For the week the benchmark index Nikkei 225 Stock Average declined 0.7%, first weekly decline in more than two months.[/R]

Stocks in Japan closed higher after U.S. March retail sales increased and Seven & I and Fast Retailing Co Ltd raised their earnings outlook.

The Nikkei 225 Index in Tokyo closed higher 36.14 or 0.32% to 11,204.34 and of the stocks in Nikkei 225 Stock Average, 130 increased, 76 declined and 19 was unchanged.

Nikkei Movers

The Yokohama Rubber Company, Limited led the decliners in the Nikkei 225 Stock Average with a loss of 3.4% followed by losses in Clarion Co Ltd of 3.3%, in Canon Inc of 3.3%, in COMSYS Holdings Corporation 2.7% and in Mitsui Mining and Smelting Company, Limited 2.1%.

Seven & I Holdings Co., Ltd led gainers in the Nikkei 225 Stock Average with a rise of 6.1% followed by gains in All Nippon Airways Co., Ltd 5.1%, in UNY Co Ltd of 3.6% and in Daiwa Securities Group Inc 3.5%.

Other Movers

Canon Inc decreased 2.7% to 4,250.00 yen the maker of cameras was downgraded to “neutral” from “buy” at Goldman Sachs.

Fast Retailing Co Ltd added 3.1% to 15,470.00 yen after the clothing retailer raised its profit forecast and a dividend. The retailer estimated 5.2% increase in net income to 71 billion yen and increased its dividend to 230 yen from 200 yen.

INPEX Holdings Inc fell 0.7% to 713,000.00 yen.

Kyocera Corporation an electronics maker fell 0.5% to 9,380.00 yen.

Seven & I Holdings Co., Ltd advanced 6.1% to 2,456.00 yen after the company said it will acquire 2.2% of its stock. The company also estimated earnings in the current fiscal year ending in February 2011 of 100 billion yen from 44.9 billion yen.

Steelmakers closed higher after Mizuho Securities Co lifted its views on Nippon Steel JFE Holdings according to a report on Reuters. Nippon gained 2.5% to 372 yen and JFE Holdings increased 2.3% to 3,795 yen.

Toyota Motor Corporation rose 0.4% to 3,705.00 yen.