Japan Stocks Rise on Machinery Orders Increse and Weaker Yen

Nigel Thomas
13 Oct, 2011
New York City

Stocks in Japan gained after machinery orders were better than expected. Exporters advanced after the yen closed down at one month low and financials gained after euro zone leaders promised quicker action to recapitalize banks.

[R]6:00 PM Tokyo – Stocks in Japan gained after machinery orders were better than expected. Exporters advanced after the yen closed down at one month low and financials gained after euro zone leaders promised quicker action to recapitalize banks.[/R]

Stocks in Japan reversed from earlier struggle to close higher at close. Industrials gained after machinery orders soared in September and exporters gained after the yen declined.

Banks and financials gained after the euro zone leaders promised quicker action to recapitalize banks and Slovakian leaders agreed to vote in favor of the expanded rescue fund contribution.

Machinery orders in August were ahead of expectations according to the data released by the Cabinet Office today.

Gross orders increased 2.1% in August and core orders excluding the shipping and utility power machinery orders soared 11% from the previous month, the largest increase from the 12.8% increase in August of 2010.

Gross orders surged 20% from a year ago and export orders increased 32% in the month.

The Nikkei 225 Stock Average increased 1% to 8,823.25 and the broader Topix index added 0.7% to 758.83.

The yen edged lower to 77.27 from 76.67 against one dollar and fell to 115 yen against one euro.

Trading volume decreased to 1.58 billion shares on the main board of the Tokyo Stock Exchange from the average of 1.86 billion shares last week.

Thailand floods continue to wreak havoc on vast areas in Thai countryside. At least 280 people have been killed after heavy monsoon rains and mudslides in the last two months and water levels are rising around the capital city Bangkok.

The flood damage was estimated to increase 100 billion baths of $3.1 billion and 1% of GDP. Three large industrial estates have been closed in the north of Ayutthaya and several Japanese companies including Toyota, Nikon, Honda and Hoya have suffered plant closures.

Stock Movers

Advantest increased 5.5% to 889 yen after ASML reported higher than expected earnings yesterday.

Dainippon Screen Manufacturing Co. gained 2.5% to 577 yen and Tokyo Electron Ltd closed up 1.4% to 4,020 yen

Exporters closed higher after the yen declined.

Toyota Motor increased 18 yen to 2,600 yen and Honda Motor Co. added 7 yen to 2,302 yen and Nissan Motor Co Ltd increased 3 yen to 725 yen.

Sony Corp increased 45 yen to 1,562 yen, Panasonic Corp rose 15 yen to 756 yen and Canon Inc closed up 5 yen to 3,535 yen. Sharp Corp increased 18 yen to 693 yen.

Machinery makers gained after August machinery orders were ahead of expectations and core orders soared from the month ago.

Olympus Corp rose 109 yen to 2,482 yen. Fanuc Ltd increased 390 yen to 11,970 yen. Kyocera increased 160 yen to 6,990 yen.

The Tokyo Electric Power Company increased 2 yen to 217 yen, Tohoku Electric Power decreased 24 yen to 984 yen and the Kansai Electric Power fell 15 yen to 1,197 yen.

Mitsui OSK Lines, Ltd increased 8 yen to 309 yen, Kawasaki Kisen Kaisha closed unchanged at 159 yen and Nippon Yusen K.K. was flat 202 yen.

Mitsubishi UFJ Financial Group rose 7 yen to 340 yen and Sumitomo Mitsui Financial Group increased 55 yen to 2,159 yen.

Mitsubishi Corp increased 36 yen to 1,580 yen and Mitsui & Co, Ltd gained 8 yen to 1,122 yen. Marubeni Corp increased 11 yen to 430 yen.

Komatsu Ltd increased 77 yen to 1,770 yen and Hitachi Construction Machinery Co increased 25 yen to 1,436 yen.

Dai-ichi Life rose 3.1% to 86,800 yen after Slovakian leaders agreed to approve the contribution to the expanded rescue fund and European leaders urged for a quicker action on the bank recapitalization plan.

Toyota Motor increased 18 yen to 2,600 yen and Honda Motor Co. added 7 yen to 2,302 yen and Nissan Motor Co Ltd increased 3 yen to 725 yen.

Sony Corp increased 45 yen to 1,562 yen, Panasonic Corp rose 15 yen to 756 yen and Canon Inc closed up 5 yen to 3,535 yen. Sharp Corp increased 18 yen to 693 yen.

Olympus Corp rose 109 yen to 2,482 yen. Fanuc Ltd increased 390 yen to 11,970 yen. Kyocera increased 160 yen to 6,990 yen.