Nikkei Rises 1.4%; Olympus, Ibiden Fall; Sharp, Komatsu, Terumo Rise

Nigel Thomas
28 Oct, 2011
New York City

The benchmark Nikkei index in Tokyo gained 1.4% and for the week added 4.2%. Softbank earnings more than doubled on iPhone sales. Sharp, Ibiden, Omron and Terumo lowered earnings outlook for the year and cited stronger yen and weak demand in Europe. Thai floods prompt more production worries.

[R]6:00 PM Tokyo – The benchmark Nikkei index in Tokyo gained 1.4% and for the week added 4.2%. Softbank earnings more than doubled on iPhone sales. Sharp, Ibiden, Omron and Terumo lowered earnings outlook for the year and cited stronger yen and weak demand in the developed markets. Thai floods prompt more production worries.[/R]

Stocks in Japan gained for the second day in a row and closed up for the week. Financials closed higher but select electronics companies gained after the release of earnings. Strong yen is forcing several Japanese electronics exporters to lower the earnings outlook for the year.

The Nikkei 225 Stock Average rose 123.93 or 1.4% to 9,050.47 and the broader Topix index added 1.1% to 771.43. For the week the Nikkei increased 4.2% and the Topix gained 3.7%.

The yen strengthened to 75.64 against one dollar and Bank of Japan said yesterday it plans to buy more assets.

In trading on the First Section of the Tokyo Stock Exchange, 2.16 billion shares changed hands, up from 1.8 billion shares trading on Thursday and five-week high. Of the shares traded, 602 declined and 933 rose.

Flood waters in Bangkok continue to pose problems for the authorities and residents as water levels at the river Chao Phraya rise. Don Mueang domestic airport direct Kanpat Mangkalasiri said today about 90% of the airport is flooded with 50 centimeters deep water.

Suvrnabhumi Airport deputy manager Suk Puangthum said wall of 23.5 meter high will protect the airport and hold water and two water reservoirs each with 4 million cubic meter capacity will also help water drainage. The airport authorities briefed Japanese experts and reviewed power supply system and said authorities are “well prepared” to tackle flood waters.

Stock Movers

Softbank Corp soared 8.3% to 2,655 yen after the third largest mobile services provider said first half net more than doubled to 217.3 billion yen from 76.8 billion yen a year ago period.

Toyota Motor increased 48 yen to 2,632 yen and Honda Motor Co. added 105 yen to 2,498 yen and Nissan Motor Co Ltd added 4 yen to 723 yen.

Sony Corp increased 59 yen to 1,709 yen, Panasonic Corp gained 20 yen to 826 yen and Canon Inc increased 20 yen to 3,565 yen.

Nikon Corp gained more than 2.5% to 1,757 yen after first half net income was 39% higher than the previous estimate on better than expected sale of digital cameras.

Olympus Corp plunged 10% or 138 yen to 1,217 yen and Tokyo Stock Exchange said company faces shareholder lawsuit and inquiry from the exchange.

Fanuc Ltd increased 10 yen to 13,070 yen. Kyocera closed down 250 yen at 6,950 yen after it lowered its full-year net outlook 22% to 87 billion yen.

Sharp Corp gained 6% to 737 yen after the company said its first-half operating profit dropped 23% to 33.6 billion yen and the electronics makers lowered its full-year estimate on the yen’s strength and weak demand in the European and the U.S. markets.

Ibiden Co dropped 11% to 1,743 yen after the electronics and ceramics parts maker lowered its full-year net income estimate more than 70% to 3.3 billion yen and blamed on stronger yen.

Omron Corp dropped 5.4% or 99 yen to 1,747 yen after it lowered full-year outlook 21% to 27 billion yen.

Terumo Corp surged 6% to 4,105 yen and the medical devices and blood transfusion products maker lowered its current fiscal year net outlook to 32.5 billion yen from 38.5 billion yen.

Mitsui OSK Lines, Ltd increased 3 yen to 321 yen, Kawasaki Kisen Kaisha, Ltd closed up 7 yen to 166 yen and Nippon Yusen K.K. gained 2 yen to 206 yen.

Dai-ichi Life rose 2.9% to 93,500 yen as European leaders agreed to bank recapitalization plan and a voluntary Greek debt restructuring.

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

MS & AD Insurance Group Holdings, Inc rose 2.4% or 38 yen to 1,614 yen and NKSJ Holdings Inc gained 36 yen to 1,653 yen.

Mitsubishi UFJ Financial Group rose 3 yen to 353 yen and Sumitomo Mitsui Financial Group increased 19 yen to 2,253 yen.

Mitsubishi Corp increased 22 yen to 1,659 yen and Mitsui & Co, Ltd gained 16 yen to 1,181 yen. Marubeni Corp increased 4 yen to 468 yen.

Komatsu Ltd increased 107 yen to 2,023 yen and Hitachi Construction Machinery Co increased 38 yen to 1,560 yen.

Komatsu lowered its current full-year outlook 7% to 186 billion yen and said it plans to buy back its shares for up to 30 billion yen between next week and December 28