Nikkei in Japan at 9-month High; Toyota Lifts Outlook

Nigel Thomas
08 Feb, 2011
New York City

Stocks in Japan rose and the Nikkei index closed at a 9-month high on better than expected earnings. Toyota lifted its earnings outlook for the year and Japan Tobacco also made positive comments. Toyota said sales in China and emerging market are ahead of expectations. KDDI closed up 5.8%.

[R]5:00 Tokyo – Stocks in Japan rose and the Nikkei index closed at a 9-month high on better than expected earnings. Toyota lifted its earnings outlook for the year and Japan Tobacco also made positive comments. Toyota said sales in China and emerging market are ahead of expectations. KDDI closed up 5.8%.[/R]

Stocks in Japan closed higher after Toyota lifted its full year net outlook. Nikkei index closed at a 9-month high as investors shift the asset base to more developed nations on the rising earnings and better economic outlook.

Toyota followed Honda in revising outlook and Nissan is expected to report its earnings tomorrow. Toyota lifted its estimate on higher sales in Asia and other emerging markets.

Nikkei 225 Stock Average gained 0.4% to 10,635.98 and the broader Topix index added 0.4% to 944.

Ministry of Finance said Tuesday current account surplus rose 30.5% to 1.195 trillion yen or $14.5 billion in December before adjusting for seasonal factors.

For the full year 2010, trade surplus increased to 17.080 trillion yen, up 28.5% from 2009 as exports increased in the year. In December alone, exports rose 14% to 5.85 trillion yen on a rise in exports to China and U.S.

The data released by the ministry also indicated that Japan is a net seller of bonds contrary to widely held perception. For the whole year, China sold bonds and notes by 37.4 billion yen and sold net 430.4 billion yen of money market securities.

Toyota Lifts Outlook

Toyota Motor said nine months net soared four-fold and revised the outlook for the full year earnings but latest quarter to December net declined 39%.

For the nine-month period net soared 293.7% to 382.7 billion and lifted annual net outlook may double to 490 billion yen.

Net in the third quarter declined to 93.6 billion yen from 153.2 billion yen. Sales in the quarter declined 12% to 4.6 trillion yen.

In January Toyota said 2010 global sales were 8.42 million vehicles, largest auto seller in the world and ahead of 8.39 million unit sales at General Motors.

Toyota revised its estimate of the yen dollar exchange rate to 86 from 85.

Stock Movers

Horiba Ltd increased 6.6% to 2,549 yen after the company revised the full year net income outlook by 37%.

Nippon Meat Packers Inc soared 6.5% to 1,190 yen after the company reported nine months to December net surged 15% from a year ago and lifted fiscal year income estimate by 7.7% to 14 billion yen.

Toyota Motor Corp closed unchanged at 3,490 yen.

Japan Tobacco increased 0.9% to 333,000 yen after the cigarette maker reported nine-month profit to increased 4.8% and lifted its annual earnings outlook. Sales in the domestic market declined on higher taxes levied on cigarettes.

KDDI Corp gained 5.8% after Credit Suisse lifted the rating on the company after the appointment of the new chief executive and prospect of better sales in smart phone segment.