Tokyo Indexes Rise on Revised Outlook from Honda, Orix, Toto and Esai

Devan Biswas
01 Feb, 2011
New York City

Stocks in Japan rallied after Honda, Orix, Toto and Sumitomo Heavy lifted earnings outlook. The benchmark index Nikkei 225 Stock Average edged up 0.4% but closed near the low for the month.

[R]5:00 PM Tokyo – Stocks in Japan rallied after Honda, Orix, Toto and Sumitomo Heavy lifted earnings outlook. The benchmark index Nikkei 225 Stock Average edged up 0.4% but closed near the low for the month.[/R]

Stocks in Tokyo closed higher tracking gains in Asia and in commodities prices. Revised profit estimate from Honda, Orix Corp and Toto Industries also contributed to positive sentiment.

Nikkei 225 Stock Average increased 0.4% or 36.58 to 10,274.50 after losing more than 1.2% on Monday and dropping to a low for the year. The broader index Topix gained 0.4% to 913.52.

For every nine shares advancing in Tokyo trading 6 declined in a turnover of 2 billion shares.

The yen closed at 81.59 to a dollar and crude oil prices rallied to a 2-year high.

Stock Movers

Resource and energy shares closed higher as crude oil in London trading surged above $100 a barrel and copper and zinc gained to close at 2-year high.

Inpex Corp rose 2.3% to 538,000 yen and Mitusi & Company increased 1% to 1,394 yen. JX Holdings increased 3.1% to 572 yen.

Daito Construction Co soared 17% to 6,750 yen after the company said it will purchase 33% of its outstanding shares.

Exporters declined as the yen strengthened.

Canon Inc fell 1.4% to 3,970 yen and Sony Corp declined 0.5% to 2,815 yen.

Esai Co gained 1.3% to 2,880 yen after the memory loss drug maker said nine-month profit increased 25% to 67.4 billion yen. The drug maker lowered its full year revenues outlook for the year to declined 4.1% to 770 billion yen

Honda increased 2% to 3,545 yen after the second largest automaker estimated full year profit estimate 6% to 530 billion yen and the company credited the increase to better than expected motorcycle sales in Asia and U.S. auto sales.

Orix Corp gained 3.7% to 8,400 yen after the leasing and financing company lifted its annual profit estimate to 67 billion yen.

Hitachi added 3.4% to 463 yen after Nikkei newspaper reported that the company is likely to post fiscal third quarter net of 100 billion yen.

Makers of machinery gained sharply after profit estimate revisions. Toto Ltd, Nitto Denko Corp and Sumitomo Heavy Industries Ltd jumped more than 4% after lifting earnings outlook.