Tokyo Stocks Surge; Toyota, Canon Up

Darlington Musarurwa
26 Apr, 2010
New York City

Stocks in Japan surged tracking gains in the U.S. Toyota Motor estimated operating profit in the current year and after the close Canon Inc reported first quarter net surged three-fold. The camera and office equipment maker lifted full-year outlook.

[R]7:00 PM Tokyo, Japan – Stocks in Japan surged tracking gains in the U.S. Toyota Motor estimated operating profit in the current year and after the close Cannon Inc reported first quarter net surged three-fold. The camera and office equipment maker lifted full-year outlook.[/R]

Nikkei 225 Stock Average tracking gains in the U.S. and European markets. The yen weakened after the U.S. new homes sales increased. The benchmark stock index gained the most in nine weeks.

Investors turned positive after the International Monetary Fund said it will expedite loan disbursement to Greece after the nation’s prime minister asked for emergency loans from the IMF and the EU.

Toyota Motor Corp today estimated that the automaker will post a full year operating profit. The carmaker had earlier forecast a 20 billion yen loss in the period. Canon Inc after the close lifted its estimate of full year sales and earnings outlook.

10-year bonds fell for the first time in three days.

In Tokyo trading, Nikkei 225 Stock Average rose 2.3% or 251.33 to 11,165.79, and the broader Topix Index edged up 1.9% to 996.71.

The yen declined to 94.35 against one dollar and fell to 126.35 against the euro.

In the first section of the Tokyo Stock Exchange 10.4 billion shares worth 728 billion yen were traded and in the second section 336 million shares valued at 5.04 billion yen changed hands.

Of the Nikkei 225 index stocks, 217 rose, 6 fell, and 2 were unchanged. IHI Corp. led gainers in the index shares with a rise of 6.8% followed by Hino Motors climbing 6.3%.

Japan’s Rising Debt Worries IMF

The International Monetary Fund deputy managing director Naoyuki Shinohara said yesterday Japan’s fiscal vulnerability is “fairly high” and there is need for accelerated effort to put the country’s finances in order as reported by Japan Today.

The IMF also estimated that the nation’s debt is likely to surge to nearly 200% of GDP.

IMF to Expedite Aid to Greece

IMF managing director Dominique Strauss-Kahn said over the weekend that the agency will expedite the financial aid to Greece after Prime Minister George Papandreou asked for the emergency loan in a televised address to the nation.

Greece faces an estimated €9 billion in debt redemptions next month, including a €8.5billion of 10-year bond that matures on May 19.

The European Union has have pledged to loan Greece up to €30 billion in the first year of any aid program, while the IMF is expected to provide additional €15billion.

China to Launch Additional Stimulus, Economists Raises Doubts

Chinese government will unveil additional 4 trillion yuan stimulus and offer support to nine new industries, according to a news report from China Business.

The report added that the National Development Reform Commission will release the details of the stimulus in August.

Several economists expressed doubts that China needs additional stimulus after the economy expanded at 11.9% rate in the first quarter.

Nikkei Movers

Sanyo Electric Co., Ltd led the decliners in the Nikkei 225 Stock Average with a loss of 0.6% followed by West Japan Railway Company 0.4%, Chugai Pharmaceutical Co Ltd 0.4%, Toho Co Ltd 0.3% and All Nippon Airways Co., Ltd 0.3%.

IHI Corporation led gainers in the Nikkei 225 Stock Average with a rise of 6.8% followed by Sumitomo Chemical Co Ltd 5.7%, Hino Motors Ltd 5.5% and Nippon Light Metal Company, Ltd. 5.3%.

Other Movers

Advantest Corporation climbed 2.9% to 2,474.00 yen after maker of memory-chip testers expects a 1 billion yen ($10.6 million) operating profit for the three months ending in March. The company will declare its first quarterly profit since the last quarter of 2007 according to Nikkei English News report.

Canon Inc advanced 3.4% to 4,390.00 yen after the yen declined in international markets and after the close the company revised its full-year outlook higher. The company estimated full year net income of 240 billion yen and said that first quarter net income surged to 56.8 billion yen.

Net income at the camera division increased to 47.3 billion yen and at the office equipment nearly tripled to 72 billion yen in the quarter ending in March.

Honda Motor Co., Ltd increased 3.1% to 3,315.00 yen after the yen declined against the dollar and the euro.

Komatsu Ltd the maker of earth moving machinery gained 3.8% to 1,879.00 yen.

Sony Financial Holdings Inc fell 0.1% to 323,000.00 yen.

Toyota Motor Corporation added 3.5% to 3,690.00 yen after the carmaker estimated quarterly profit.