Merger Deals Drive Japan Trading Sentiment; Hitachi, Terumo Up

Nigel Thomas
08 Mar, 2011
New York City

Stocks in Japan gained after two merger deals. Hitachi rose after it sold its hard disk unit for $4.3 billion and Terumo purchased blood transfusion technology maker for $2.7 billion. Nomura prepares for global expansion after it appointed its first female chief financial officer.

[R]4:40 PM Tokyo – Stocks in Japan gained after two merger deals lifted sentiment. Hitachi rose after it sold its hard disk unit for $4.3 billion and Terumo purchased blood transfusion technology maker for $2.7 billion. Nomura prepares for global expansion after it appointed its first female chief financial officer and an Indian-born to the third in line for command.[/R]

The Nikkei 220 Stock Average increased 20.17 or 0.2% to 10,525.19 and the broader Topix index decreased 2.47 or 0.3% to 939.16.

Crude oil futures eased in the early trading in Singapore and in Tokyo on the reports that Libyan leader Muammar Gaddafi has offered to step down and form an interim government on the condition of safe passage to his entourage and family.

The rebels in Benghazi and outside Tripoli rejected the offer according to sources contacted by 123jump.com.

Merger news also bolstered trading sentiment in early trading.

Western Digital agreed to acquire Hitachi Global Storage for about $4.3 billion. Japan-based medical equipment maker Terumo agreed to purchase blood transfusion technology firm CaridianBCT Holding Corp for $2.63 billion.

Nomura appointed Junko Nakagawa as its first female chief financial officer and also appointed Indian-born Jasjit Bhattal as group deputy president and chief executive of the wholesale banking division. Bhattal is third in line to be the management and top position ever held by a foreigner in the Japanese firm.

Nakagawa is expected to steer companies global expansion and after its recent acquisition of Lehman Brothers Asian unit.

Stock Movers

Hitachi added 1.8% to 514 yen after the company agreed to sell its hard disk unit and continue the company restructuring.

Terumo increased 3.2% to 4,640 yen.

Automakers traded lower on the worries that a sustained rise in oil price will crimp global demand. Honda Motor declined 0.3% to 3,425 yen and Toyota and Nissan traded lower.

Eisai increased 1.3% to 3,150 yen after the drugmaker said it will trim its U.S. workforce by 20% or 600.

Railroad companies closed lower on a speculation from Goldman Sachs and rating downgrade. West Japan Railway decreased 1.5% to 328,000 yen and East Japan Railway fell 0.9% to 5,690 yen.

Fast Retailing gained 2.9% to 12,620 yen.