Japan Exports Rebound, Nikkei Jumps 1.9%

Nigel Thomas
24 Oct, 2011
New York City

Stocks in Japan soared after September exports rose at a faster pace than expected on a surge in auto parts shipments. In addition, Chinese manufacturing gauge expanded at a fastest pace in October since March. Tepco may be forced to sell its Uranium mining rights and Olympus dropped to a new low.

[R]6:00 PM Tokyo – Stocks in Japan soared after September exports rose at a faster pace than expected on a surge in auto parts shipments. In addition, Chinese manufacturing gauge expanded at a fastest pace in October since March. Tepco may be forced to sell its Uranium mining rights and Olympus dropped to a new low.[/R]

Stocks in Japan surged after exports rose more than expected in September and improved tone of the discussion among the European leaders.

Japan reported better than expected increase in exports of 2.4% in September and trade surplus was 300 billion yen or $3.9 billion. Auto exports increased 4.9% and auto parts exports soared 11.5%. Exports to China increased 2.7%.

Imports in the month increased 12.1% according to the data released by the Ministry of Finance.

In addition, a private survey of Chinese manufacturing also showed an increase in activities in October, the first since March of this year, according to the preliminary HSBC China Manufacturing Purchasing Managers Index.

The Nikkei 225 Stock Average increased 165.09 or 1.9% to 8,843.98 and the broader Topix index added 1.5% to 755.44.

The yen retreated to 76.30 from a record of 75.78 against one dollar in Friday’s trading.

In trading, 1.34 billion shares changed hands on the main board of Tokyo Stock Exchange compared to 1.32 billion shares in Friday’s trading and below the average of over 2 billion shares for the year.

Thailand is struggling with the rising flood waters in Bangkok. The irrigation authority along with the defense forces is working to divert the flood waters away from the central business districts.

Northern Bangkok is on high alert as flood waters are expected to race through the city as the authorities open more canal gates.

Stock Movers

Toyota Motor increased 33 yen to 2,580 yen and Honda Motor Co. added 60 yen to 2,355 yen and Nissan Motor Co Ltd increased 6 yen to 698 yen.

Mazda Motor Corp added 4 yen to 162 yen and the automaker said it will suspend its production in Thailand till October 22 and not sure how it will restart production after October 25.

Sony Corp decreased 20 yen to 1,536 yen, Panasonic Corp rose 8 yen to 784 yen and Canon Inc increased 60 yen to 3,555 yen.

Nidec Corp increased 4.6% to 6,200 yen and TDK Corp soared 8% to 2,967 yen after Seagate Technology reported better than expected first quarter earnings. Seagate is the world’s largest disk drive maker.

Olympus agreed to set up an independent inquiry commission of auditors and attorneys to investigate prior payments for acquisitions.

Olympus Corp dropped 11% or 132 yen to 1,099 yen and earlier dropped as low as 1,012 yen, nearly 10-year low. Fanuc Ltd increased 370 yen to 12,540 yen. Kyocera closed up 140 yen at 7,150 yen.

DeNA Co. rose 3.5% to 3,215 yen after the company is expected to pay 10 billion yen to acquire Yokohama BayStars professional baseball team from Tokyo Broadcasting System, Inc.

Tokyo Broadcasting increased 3.2% to 963 yen after it confirmed the discussions with DeNA Co.

Tokyo Electric Power is expected to sell its Uranium mining rights according to the news article in the Yomiuri.

The Tokyo Electric Power Company increased 21 yen to 284 yen, Tohoku Electric Power decreased 12 yen to 983 yen and the Kansai Electric Power fell 5 yen to 1,210 yen.

Mitsui OSK Lines, Ltd increased 5 yen to 303 yen, Kawasaki Kisen Kaisha, Ltd closed up 4 yen at 153 yen and Nippon Yusen K.K. added 1 yen at 200 yen.

Dai-ichi Life rose 4% to 83,300 yen as European leaders struggle to find a way to increase the rescue fund and start a six day marathon meetings that will end on Wednesday.

Property and Casualty insurers declined on the mounting losses related to Thailand floods.

MS & AD Insurance Group Holdings, Inc gained 1.9% or 29 yen to 1,547 yen and NKSJ Holdings Inc declined 1.7% or 27 yen to 1,578 yen.

Mitsubishi UFJ Financial Group rose 3 yen to 338 yen and Sumitomo Mitsui Financial Group increased 24 yen to 2,164 yen.

Hitachi Zosen declined to 2.7% to 107 yen after the shipbuilders lowered its operating profit outlook for the six months to September to 1.6 billion yen from 4 billion yen and cut its revenues estimate to 125 billion yen from 134 billion yen.

Mitsubishi Corp increased 49 yen to 1,527 yen and Mitsui & Co, Ltd increased 42 yen to 1,099 yen. Marubeni Corp increased 16 yen to 429 yen.

Komatsu Ltd increased 72 yen to 1,778 yen and Hitachi Construction Machinery Co increased 66 yen to 1,395 yen.

Bridgestone Corp increased 4% to 1,764 yen and the company is planning to spend as much as 1.2 trillion yen in the next five years to increase its production of mining and construction equipment tires.

The company also said in its five year plan it plans to increase its operating profit to 10% of sales in the fiscal year 2016 from 5.8% in fiscal 2011.