Earnings Lift Japan Stocks; Toshiba, Sumitomo Heavy, Hitachi Rise

Nigel Thomas
10 May, 2011
New York City

Japan stocks traded higher as earnings overshadowed growing sovereign default worries in the euro-zone. Toshiba, Hitachi and Sumitomo Heavy lead the gainers are reporting or guiding better than expected earnings. Softbank Corp estimated higher full-year earnings.

[R]5:00 PM Tokyo – Japan stocks traded higher as earnings overshadowed growing sovereign default worries in the euro-zone. Toshiba, Hitachi and Sumitomo Heavy lead the gainers are reporting or guiding better than expected earnings. Softbank Corp estimated higher full-year earnings.[/R]

Stocks in Tokyo trading gained as stronger earnings overshadowed rising sovereign debt worries in Europe. Toshiba, Sumitomo Heavy and Hitachi led the gainer in trading on earnings announcements or expectations.

The Nikkei 225 Stock Average increased 0.4% to 9,830.01 and the broader Topix index increased 0.5% to 857.29.

The yen appreciated to 114.80 to a euro and fetched 80.25 against one dollar.

Stock Movers

Denki Kagaku jumped 8% to 448 yen after the company estimated net income to increased 25% to 18 billion yen.

Inpex Corp increased 1% and Japan Petroleum Exploration Co by 1.6% after crude oil prices eased in Asian trading.

Toshiba Corp increased 3.7% to 451 yen after engineering company announced quarterly profit nearly doubled and offered strong outlook for storage chips.

Hitachi Ltd increased 1.8% and Renesas Electronics Corp added 1.8% and rallied as much as 3.4%.

Sumitomo Heavy soared 12% to 597 yen after the company estimated 18% increase in operating profit to 54 billion yen on rising sales in emerging markets and China.

Euro-zone linked stocks declined for the second day in a row. Nintendo, Yamaha, Nikon and Nippon Glass declined.

Nintendo dropped 1.6% to 19,120 yen and Nikon Corp edged 0.3% lower to 1,671 yen.

Softbank Corp declined 3% to 3,135 yen after the company guided higher sales and earnings for the full year but did not cite any specific data.

Toyota rallied 1.7% to 3,250 yen after Nikkei newspaper speculated that the automaker may reach to normal production two to three months earlier than expected.