Earnings Season in Full Swing in Tokyo; Fanuc, Komatsu in Focus

Marcus Jacob
26 Apr, 2012
New York City

Stocks in Japan were in a holding pattern as the earnings season began in earnest and ahead of central bank comments tomorrow. Fanuc plunged 6% after it estimated 3% decline in operating profit for the six months to September.

[R]8:30 PM Tokyo – Stocks in Japan were in a holding pattern as the earnings season began in earnest and ahead of central bank comments tomorrow. Fanuc plunged 6% after it estimated 3% decline in operating profit for the six months to September.[/R]

Stocks in Tokyo gained in the morning after investors reacted to the acquittal of former ruling party leader Ozawa but scaled back gains ahead of the central bank comments tomorrow and beginning of the earnings season.

The Nikkei 225 Stock Average inched up 0.82 to 9,561.83 and the broader Topix index edged up 0.61 to 810.10.

In trading, stock turnover decreased to 1.56 billion shares from 1.46 billion shares in yesterday’s trading.

Ichiro Ozawa was acquitted in a corruption scandal by a local court and raised expectations that he may challenge the proposed consumption tax increase to 5% by Prime Minister Yoshihiko Noda.

Stock Movers

Kansai Electric Power Company, Inc dropped 30 yen to 1,173 yen and Tokyo Electric Power unchanged to 199 yen.

Toyota Motor closed up 10 yen to 3,290 yen and Honda Motor Co. advanced 26 yen to 2,896 yen and Nissan Motor Co Ltd decreased 9 yen to 831 yen.

Sony Corp added 4 yen to 1,327 yen. Panasonic Corp closed up 2 yen at 629 yen and Canon Inc tumbled 85 yen to 3,715 yen. Nintendo Co. Ltd surged 220 yen to 11,470 yen.

Olympus Corp closed up 9 yen to 1,267 yen, Nikon soared 32 yen to 2,381 yen and Fanuc Ltd declined 900 yen to 13,900 yen. Hitachi Ltd rose 3 yen to 515 yen.

Construction machinery makers declined after Caterpillar reported weak quarterly performance on the weakness in sales in China and Brazil.

Komatsu Ltd dropped 35 yen to 2,339 yen and Hitachi Construction Machinery Co slumped 67 yen to 1,754 yen.

After the close, Komatsu reported operating profit of 256 billion yen for the year ending in March, lower than its earlier estimate of 282 billion yen.

Toyo Engineering Corp closed up 1 yen to 369 yen and Fanuc dropped 6.1% to 13,900 yen after it estimated 3.1% decline in operating profit to 113 billion yen in the six months to September.

Mitsui O.S.K. Lines, Ltd unchanged to 315 yen, Kawasaki Kisen Kaisha, Ltd rose 1 yen to 162 yen and Nippon Yusen K.K. closed up at 5 yen to 233 yen.

Nippon Electric Glass Co Ltd gained 2.2% and Asahi Glass Co Ltd added 1.8% after U.S. based Corning reported better than expected earnings.

Fast Retailing Co. tumbled 200 yen to 17,860 yen and J. Front Retailing Co. Ltd added 1 yen to 423 yen.

Mitsubishi UFJ Financial Group rose 1 yen to 388 yen and Sumitomo Mitsui Financial Group added 5 yen to 2,593 yen. Nomura Holdings, Inc decreased 8 yen to 336 yen.

Sumitomo Mitsui Financial Group said it plans to acquire 24% stake in China Post & Capital Fund Management Co. for about 10 billion yen as it enters the wealth management market in the nation.

Tokyo Tatemono Co., Ltd closed unchanged to 302 yen and Mitsui Fudosan advanced 9 yen to 1,502 yen and Sumitomo Realty & Development Co. soared 24 yen to 1,898 yen.

Nippon Steel unchanged to 201 yen and JFE Holdings Inc dropped 3.3% or 52 yen to 1,508 yen.