Nikkei Jumps 0.8%; Fujitsu and Nippon Steel Fall on Earnings

Marcus Jacob
30 Jul, 2012
New York City

Stocks in Japan traded higher as political momentum builds in the euro zone for another round of bond purchase. Nippon Steel fell after it estimated loss in the first half. Fujitsu traded near three decade low after it reported a net loss but Konica Minolta gained on earnings.

[R]7:00 PM Tokyo – Stocks in Japan traded higher as political momentum builds in the euro zone for another round of bond purchase. Nippon Steel fell after it estimated loss in the first half. Fujitsu traded near three decade low after it reported a net loss but Konica Minolta gained on earnings.[/R]

Stocks in Tokyo traded gained on the rising expectations that the U.S. and European central bankers are likely to offer a coordinated plan to revive the sovereign bond market in Europe and measures to support economic growth in the currency union.

U.S. Treasury Secretary Timothy Geithner and the head of European Central Bank Mario Draghi are expected to meet later today in Frankfurt.

The Nikkei 225 Stock Average advanced 68.80 to 8,635.44 and the broader Topix index gained 5.30 to 731.74.

Stock Movers

Steelmakers retreated after Nippon Steel Company reported a loss in the fiscal first quarter and estimated a loss in the first half.

Nippon fell 4.4% to 153 yen and JFE Holdings declined 3% to 1,029 yen and Kobe Steel decreased 2.7%.

Toyota Motor gained 14 yen to 2,957 yen and Honda Motor Co. increased 14 yen to 2,499 yen. Nissan Motor Co Ltd added 9 yen to 736 yen.

Canon Inc fell 0.6% to 2,504 yen, Seiko Epson Corp slipped 2.7% to 583 yen and Ricoh Co Ltd increased 1.7% to 527 yen.

After the close Canon said it would buy back up to 50 billion yen of its own stock.

Konica Minolta gained 6% to 550 yen after operating profit soared 94% to 6.3 billion yen or $80 million.

Sony Corp slid 6 yen to 941 yen and Panasonic Corp fell 1 yen to 522 yen. Toshiba edged lowered 1 yen to 256 yen. Nikon gained 31 yen to 2,136 yen.

Nintendo Co. Ltd rose 0.6% to 8,800 yen after the game console maker reported a narrower loss last week.

Fujitsu dropped 12% to 295 yen after the chipmaker reported loss of 23.8 billion yen.

Fanuc Ltd gained 40 yen to 12,730 yen, Komatsu Ltd slumped 32 yen to 1,731 yen and Hitachi Construction Machinery Co gained 6 yen to 1,402 yen.

Komatsu Ltd, the second largest construction machinery maker in the world traded lower on the Nikkei newspaper report that the first quarter operating profit declined after sales to China fell by 50%.

Hitachi Cable Ltd dropped 9% to 139 yen after the maker of optical fibres lowered its full-year estimate.

Yamada Denki advanced 2.2% or 90 yen to 4,085 yen. Nitori Holdings Co closed up 0.4% to 7,370 yen, apparel retailer Shimamura gained 1.2% to 9,090 yen and Sagami Co added 3 yen to 102 yen.

Fast Retailing Co. increased 30 yen to 15,980 yen and J. Front Retailing Co. Ltd increased 6 yen to 390 yen.

The social media site operator DeNA dropped 7% after Facebook traded to a new low on Friday after it reported weaker than anticipated revenues.

Kajima Corp rose 2 yen to 221 yen and Taisei Corp up 4 yen to 214 yen. Sekisui House Ltd gained 12 cent to 755 yen and Daito Trust Construction Co Ltd slid 0.5% to 7,590 yen.

Tokyo Tatemono Co., Ltd increased 10 yen to 287 yen and Mitsui Fudosan advanced 24 yen to 1,519 yen and Sumitomo Realty & Development Co. gained 29 yen to 1,955 yen.

Kansai Electric Power Company, Inc tumbled 70 yen or 11.2% to 555 yen and Tokyo Electric Power slid 2 yen to 123 yen.

Inpex Corp fell 0.2% to 431,500 yen and Japan Petroleum Exploration Co. slipped 19 yen to 2,931 yen.

Mitsui O.S.K. Lines, Ltd slid 2 yen to 234 yen; Kawasaki Kisen Kaisha, Ltd added 2 yen to 112 yen and Nippon Yusen K.K. up 1 yen to 173 yen.

Mitsubishi UFJ Financial Group rose 5 yen to 385 yen and Sumitomo Mitsui Financial Group increased 24 yen to 2,502 yen. Nomura Holdings, Inc raised 2 yen to 274 yen.

Tokio Marine gained 24 yen to 1,791 yen and Mito Securities advanced 5% to 147 yen.

Credit Saison Co Ltd increased 9 yen to 1,785 yen.

Nippon Steel slipped 7 yen to 1453 yen and JFE Holdings Inc plummeted 32 yen to 1,029 yen.