Tokyo Stocks Advance; Tokyo Electron Up

Darlington Musarurwa
14 Apr, 2010
New York City

Traders in Tokyo focused on Intel earnings after the largest chipmaker estimated higher second quarter sales. Tokyo Electron, the equipment maker and Intel supplier quarterly orders rose 21%. Toyota Motor Corp. suspends Lexus SUV sales in the U.S.

[R]5:00 AM New York, 7:00 PM Tokyo – Traders in Tokyo focused on Intel earnings after the largest chipmaker estimated higher second quarter sales. Tokyo Electron, the equipment maker and Intel supplier quarterly orders rose 21%. Toyota Motor Corp. suspends Lexus SUV sales in the U.S.[/R]

Stocks in Japan closed higher after chipmakers advanced. Intel Corp reported better than expected earnings and estimated higher second quarter sale on rising worldwide demand.

Tokyo Electron, the world’s second largest semiconductor equipment maker and Intel supplier also noted orders rose 21% in the three months ended March from a quarter earlier.

In Tokyo trading Nikkei 225 Stock Average gained 0.4% or 43.67 to 11,204.90, and the broader Topix Index increased 0.3% to 991.10.

In the first section of the Tokyo Stock Exchange 11.5 billion shares worth 735 billion yen were traded and in the second section 272 million shares valued at 3 billion yen changed hands.

Of the Nikkei 225 index stocks, 115 gained, 98 fell, and 12 were unchanged. Fuji Electric House led gainers in the index shares with a rise of 4% followed Nippon Light Metals advancing 3.8%.

Toyota Motor Corp. Suspends Lexus Sales

Toyota Motor Corp. announced yesterday that it is suspending sales of its Lexux 460 after U.S. Consumer Reports magazine slapped the SUV with a “don’t buy” rating on concern it could roll over.

The magazines four engineers found a safety risk in the vehicle during their standard emergency-handling tests.

Sales have been suspended indefinitely until the rollover problem is solved.

In addition, National Highway Traffic Safety Administration director of communications Julia Piscitelli said the agency that oversees vehicle testing, cautioned drivers of the Lexus to avoid excessive speed and aggressive maneuvering to retain control of their vehicles.

Lexus Group vice president Mark Templin said, “We are taking the situation with the GX 460 very seriously and are determined to identify and correct the issue Consumer Reports identified.”

Intel Records Record Q1 Sales

The world’s largest chip-maker Intel Corp reported yesterday that the company’s first quarter profits increased to $2.44 billion from $629 million in the comparable year ago period.

Revenues advanced to $10.3 billion, ahead of market expectations between $10 billion and $9.7 billion.

Intel estimated second quarter sales of $10.2 billion.

Nikkei Movers

Fuji Electric Holdings Co., Ltd led the decliners in the Nikkei 225 Stock Average with a loss of 4.0% followed by losses in Nippon Light Metal Company, Ltd of 3.7%, in Nisshinbo Holdings Inc of 3.1%, in Clarion Co Ltd 3.0% and in Oki Electric Industry Company, Limited 2.1%.

Kajima Corp led gainers in the Nikkei 225 Stock Average with a rise of 5.2% followed by gains in Fuji Heavy Industries Ltd 4.0%, in Tokyo Electron Limited of 3.6% and in Sharp Corporation 3.1%.

Other Movers

Aderans Holdings Company Limited the wigmaker added 0.6% to 1,090.00 yen.

CKD Corporation advanced 7.3% to 807.00 yen after the maker of pneumatic equipment and control devices was upgraded to “neutral” from “underperform” at Mizuho Securities Co.

Fuji Heavy Industries Ltd the maker of Subaru cars climbed 4.0% to 516.00 yen.

Imasen Electric Industrial Co surged 15.0% to 1,373.00 yen after the auto-parts maker announced it has raised its consolidated full-year outlook for revenue from 71,600 million yen to 74,000 million yen.

Kajima Corporation gained 5.2% to 242.00 yen after the general contractor said in a preliminary statement that it expects to earn 26 billion yen in operating profit this fiscal year, compared with a 9 billion yen loss for the year ended March 31.

Mitsubishi Tanabe Pharma Corporation fell 3.6% to 1,272.00 yen after the Health, Labor and Welfare Ministry ordered it to suspend some of its pharmaceutical manufacturing and sales operations for 25 days over the alleged falsification of blood product test data.

Mitsui Mining and Smelting Company, Limited the zinc refiner slipped 1.8% to 268 yen.

Nippon Steel Corp dropped 1.3% to 354 yen after the steelmakers were downgraded to “neutral” from “overweight” at JPMorgan Chase & Co.

Yamato Holdings Co the parcel-delivery service company rose 2.4% to 1,356.00 yen.