Japanese Ball-Bearings Makers Drop; Nomura, Sumitomo Mitusi Fall

Marcus Jacob
09 Nov, 2011
New York City

Stocks in Japan gained after industrial and export companies led the gainers. Isuzu Motor reported better than expected earnings and ball-bearings makers plunged on the antitrust inquiry from the European Union regulators. Nomura and Sumitomo Mitsui Financial dropped on the widening Olympus scandal.

[R]6:00 PM Tokyo – Stocks in Japan gained after industrial and export sensitive companies led the gainers. Isuzu Motor reported better than expected earnings and ball-bearings makers plunged on the antitrust inquiry from the European Union regulators. Nomura and Sumitomo Mitsui Financial dropped on the widening Olympus scandal.[/R]

Stocks in Japan gained on the optimism in the euro zone and China reported weaker than expected inflation in October. Olympus faces multiple inquiries and may be delisted from the Tokyo Stock Exchange.

The Nikkei 225 Stock Average increased 1.2% or 99.93 to 8,755.44 and the broader Topix index added 1.5% or 11.37 to 749.40.

In trading, 1.8 billion shares changed hands on the main board of the Tokyo Stock Exchange compared to 1.85 billion shares on Tuesday and for every share that fell five gained.

Stock Movers

Toyota Motor increased 39 yen to 2,542 yen and Honda Motor Co. added 23 yen to 2,335 yen and Nissan Motor Co Ltd inched up 14 yen to 727 yen.

Toyota rebounded on the hopes that the company may reach its normal operation earlier than guided by the management.

Isuzu Motors Ltd increased 4.5% to 352 yen after the auto maker reported larger than expected earnings.

Ball –bearings makers declined after European Commission said it investigated Japanese companies to probe if they violated antitrust securities violations.

Jtekt Corp dropped 8.7% to 742 yen, NTN Corp declined 5.3% to 305 yen and NSK Ltd declined 6.6% to 524 yen.

Sony Corp increased 41 yen to 1,387 yen, Panasonic Corp rose 13 yen to 715 yen and Canon Inc increased 35 yen to 3,445 yen.

Nintendo Co. Ltd added 140 yen to 12,250 yen.

Olympus Corp plunged 150 yen or 20.4% to 584 yen after the company admitted it hid securities losses for years and used the latest merger transaction by paying inflated fees to advisers.

Olympus President Shuichi Takayama blamed recently resigned President Tsuyoshi Kikukawa, Vice President Hisashi Mori and financial auditor Hideo Yamada for the questionable transactions.

Olympus dropped by its daily limit after investors worried that the company may face a delisting from the Tokyo Stock Exchange. Yamaha Moto Corp, JVC and Elpida Memory jumped more than 4% on the speculation that one of the companies may replace Olympus in the Nikkei index.

Nomura Holdings, Inc increased 4% or 10 yen to 255 yen after plunging 15% in the previous session on the worries that the broker may have played a key role in helping Olympus to hide its losses over a decade.

Fanuc Ltd decreased 90 yen to 12,810 yen and Kyocera closed up 80 yen at 7,010 yen. Furukawa Electric Co. closed unchanged at 184. Nikon Corp decreased 9 yen to 1,760 yen.

Mitsui OSK Lines, Ltd increased 11 yen to 276 yen, Kawasaki Kisen Kaisha, Ltd closed up 2 yen to 143 yen and Nippon Yusen K.K. rose 2 yen to 186 yen.

Dai-ichi Life rose 1.6% to 82,500 yen as the yields on the Italian bonds closed higher at a high in the last eleven years to 6.70%. The life insurance company holds bonds of Spain and Italy that have declined in value in the last five months.

The stock plunged in heavy trading volume after Italian yield rose to a new high and Prime Minister Silvio Berlusconi is facing a tough vote in a parliament later today.

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

MS & AD Insurance Group Holdings, Inc closed up 47 yen to 1,557 yen and NKSJ Holdings Inc rose 51 yen to 1,594 yen.

Mitsubishi UFJ Financial Group fell 4 yen to 338 yen and Sumitomo Mitsui Financial Group increased 11 yen to 2,130 yen.

Mitsubishi Corp increased 70 yen to 1,639 yen and Mitsui & Co, Ltd rose 35 yen to 1,175 yen. Marubeni Corp increased 11 yen to 470 yen.

Komatsu Ltd increased 48 yen to 1,999 yen and Hitachi Construction Machinery Co increased 11 yen to 1,533 yen.