Yen Falls After Current Account Surplus Grows; Nikon, Dainippon, Pioneer Down

Nigel Thomas
08 Aug, 2012
New York City

Stocks in Tokyo advanced higher for the third day and earnings announcement peak in the week. Nearly half of earnings missed expectations and investors dial back annual profit growth expectations. Nikon net plunges 49%.

[R]7:00 PM Tokyo – Stocks in Tokyo advanced higher for the third day and earnings announcement peak in the week. Nearly half of earnings missed expectations and investors dial back annual profit growth expectations. Nikon net plunges 49%.[/R]

Stocks in Tokyo traded higher for the third day in a row as investors looked for new announcements from the central banks of Europe and the U.S.

Traders in Tokyo have begun to dial down the earnings expectations for the current fiscal year after the latest batch of earnings confirmed weak trend as companies face stronger yen in the quarter.

Nearly one third of the companies in Topix index are expected to release earnings this week. So far, only half the companies have met or exceeded earnings estimate.

At least for today, the yen declined against the dollar and the euro after current account surplus rose to 433.3 billion yen or $5.5 billion in June from 215.1 billion from May on weaker oil prices.

The yen declined as low as 78.73 against one dollar and dropped to 97.81 from 96.96.

The Nikkei 225 Stock Average advanced 77.85 to 8,881.16 and the broader Topix index edged up 1.94 to 745.64.

In trading, turnover improved to 1.84 billion shares from 1.78 billion shares on Thursday.

Stock Movers

Tokai Carbon Co Ltd closed unchanged at 262 yen a day after the rubber company lowered fiscal year outlook and cited weak demand in China and Europe.

Honda Motor Co. increased 36 yen to 2,535 yen and Nissan Motor Co Ltd gained 10 yen to 778 yen after U.S. monthly sales increased more than expected.

Canon Inc dropped 77 yen to 2,734 yen, Seiko Epson Corp added 0.9% to 525 yen and Ricoh Co Ltd fell 0.7% to 603 yen. Sony Corp closed up 8 yen at 912.

Panasonic Corp slid 3 yen to 565 yen and Toshiba fell 2 yen to 267 yen.

Nikon advanced 58 yen to 2,270 yen ahead of earnings release after the close and a speculation in Nikkei newspaper that the partner Intel may shoulder the cost of developing next generation 450 mm semiconductor wafers that could be ready for sale as early as 2018.

After the close, Nikon lowered its fiscal full year earnings estimate to 60 billion yen or $765 million from the previous estimate of 65 billion yen. Operating profit is expected to fall to 85 billion yen.

In the quarter, sales increased 5.6% to 259.43 billion yen and operating profit fell 36.7% to 23.37 billion yen and net income declined 49% to 15.77 billion yen.

Sharp rose 2.7% to 188 yen and the troubling electronics maker was the subject of rumours in local press. Short sellers began to take profit and unwind their positions after the stock dropped to near 3-decade low.

Nintendo Co. Ltd closed up 40 yen at 8,370 yen and Fujitsu added 2% to 309 yen.

Pioneer dropped 7% to 199 yen after it lowered its net income growth projection to 15% to 8.5 billion yen.

Fanuc Ltd advanced 160 yen or 1.3% to 12,350 yen, Komatsu Ltd added 5 yen to 1,685 yen and Hitachi Construction Machinery Co increased 25 yen to 1,447 yen.

Dainippon Screen Manufacturing Co plunged 9% to 472 yen after it lowered its net income outlook 96% to 500 million yen.

Yamada Denki decreased 0.4% or 15 yen to 3,970 yen. Nitori Holdings Co plummeted 60 cents to 7,500 yen, apparel retailer Shimamura up 0.3% to 8,990 yen and Sagami Co fell 1 yen to 99 yen.

Fast Retailing Co. increased 380 yen to 17,220 yen and J. Front Retailing Co. Ltd closed down 4 yen at 391 yen.

Maruha Nichiro Holdings added 2.4% or 3 yen to 127 yen after the marine products company said it will buy back up to 3% of its stock.

Kajima Corp gained 9 yen to 233 yen and Taisei Corp increased 8 cents to 222 yen. Sekisui House Ltd rose 2 yen to 741 yen and Daito Trust Construction Co Ltd closed unchanged at 7,750 yen.

Tokyo Tatemono Co., Ltd up 1 yen to 291 yen and Mitsui Fudosan slipped 15 yen to 1,526 yen and Sumitomo Realty & Development Co. rose 1 yen to 1,976 yen.

Kansai Electric Power Company, Inc increased 12 yen to 658 yen.

Inpex Corp added 1.3% to 461,500 yen and Japan Petroleum Exploration Co. advanced 82 yen to 3,075 yen.

Mitsui O.S.K. Lines, Ltd gained 8 yen to 235 yen, Kawasaki Kisen Kaisha, Ltd rose 4 yen to 116 yen and Nippon Yusen K.K. up 4 yen to 178 yen.

Mitsubishi UFJ Financial Group slid 3 yen to 375 yen and Sumitomo Mitsui Financial Group slumped 19 yen to 2,519 yen. Nomura Holdings, Inc fell 3 yen to 278 yen.

Tokio Marine declined 30 yen to 1,818 yen and Mito Securities lowered 1.4% to 137 yen.

Credit Saison Co Ltd gained 19 yen to 1,843 yen.

Nippon Steel rose 2 yen to 163 yen and JFE Holdings Inc increased 22 yen to 1,066 yen.