Nikkei in Tokyo Eases 0.5%; Fanuc Net Up 34%, Orix Net Soars 44%

Nigel Thomas
27 Jul, 2011
New York City

Stocks in Japan declined after positive earnings were overshadowed by the rising debt tensions in the U.S. Fanuc Ltd reported higher earnings and lifted its current quarter view. The leasing company Orix also reported 44% increase in net. The dollar declined below 78 yen mark.

[R]4:00 PM Tokyo – Stocks in Japan declined after positive earnings were overshadowed by the rising debt tensions in the U.S. Fanuc Ltd reported higher earnings and lifted its current quarter view. The leasing company Orix also reported 44% increase in net. The dollar declined below 78 yen mark.[/R]

Stocks in Japan declined after U.S. new home sales were lower than expected and the U.S. lawmakers appear divided in how to resolve debt-talks impasse.

Better than expected earnings from Fanuc and Nippon Steel also weighed on the market sentiment. East Japan Railway declined on the reduce operations and Hino Motors reported a loss.

The Nikkei 225 Stock Average decreased 0.5% to 10,047.19 and the broader Topix index fell 0.8% to 859.11.

Trading volume jumped above the average of the last week to 1.7 billion shares and declining shares outnumbered the gainers by 1,276 to 280.

The yen eased to 77.13 from 77.80 against one dollar and to 111.05 from 111.95 against one euro.

Stock Movers

Industrials and capital equipment makers decreased as jitters related to the U.S. debt talks dragged broader market indexes.

East Japan Railway Com dropped 1.9% to 4,900 yen after a news report in the Nikkei suggested current fiscal year operating profit to declined 28% to 250 billion yen on fewer trains to earthquake hit areas.

Fanuc Ltd increased 1.2% to 14,730 yen after it reported first quarter operating income rose 34% to 55.01 billion yen and lifted its view for the current quarter.

Hino Motors Ltd decreased 1.2% to 484 yen after the maker trucks and buses said first quarter sales declined 21% and net loss was 4.89 billion yen. The company also guided 3 billion yen net loss in the first half ending in September.

M3 Inc soared 4% to 658,000 after the medical information services provider said sales in the quarter to June increased 63% to 1.1 billion yen on sales increase of 25%.

Japan Tobacco increased 4.7% to 333,000 yen on the speculation that the government may lower its stake in the company to pay for a new economic stimulus plan.

Koito Manufacturing Co decreased 2.4% to 1,347 yen after it reported sales in the quarter decreased to 20% and reported a loss of 790 million yen.

Orix Corp, the leasing company increased 2.2% to 8.450 yen after first quarter to June net surged 44% to 23.7 billion yen on revenues rise of 6.2%.

S.T. Corp soared 15% to 1,017 yen after the company proposed to sell radiation meters for home use as early as October.

Nippon Electric Glass Co. declined 2.6% to 996 yen after the glass maker said net in the quarter to June dropped 45% to 13.7 billion yen and estimated net in the first half to fall between 26.5 billion yen and 29.5 billion yen.

The company also highlighted in its statement to the Tokyo Stock Exchange that glass demand for commercial buildings will remain weak.