Nikkei Flirts with 9,000 Mark, Nikon Drops 8%

Nigel Thomas
09 Aug, 2012
New York City

Stocks in Tokyo gained for the fourth day and the Nikkei index extended gains to 5% in the week and brushed the 9,000 level. Bank of Japan left its asset purchase program intact and interest rates on near zero. Nikon plunged 8% and extended losses for the second day after the earnings release.

[R]7:00 PM Tokyo – Stocks in Tokyo gained for the fourth day and the Nikkei index extended gains to 5% in the week and brushed the 9,000 level. Bank of Japan left its asset purchase program intact and interest rates on near zero. Nikon plunged 8% and extended losses for the second day after the earnings release.[/R]

Stocks in Tokyo traded higher for the fourth day in a row and China reported a raft of economic data that suggested slowing economic activities and the Bank of Japan left its key rated unrevised and held its asset purchase program.

Bank of Japan held its key interest rate near zero after a two day meeting ending today and held its asset purchase program at 45 trillion yen or $573 billion and lending facility at 25 trillion yen.

The central bank released a statement indicating rising global economic uncertainties and weakening economic scenario in the euro zone.

China’s National Bureau of Statistics said today consumer prices slowed to 1.8% in July from a year ago after rising at 2.1% in June. The inflation declined for the fourth month in a row.

Industrial output growth declined to a 3-year low to 9.2% in July from 9.5% in the previous month and retail sales growth declined to 13.1% from 13.7% in June.

The yen declined as low as 78.63 against one dollar and dropped to 97.51.

The Nikkei 225 Stock Average increased 1.1% or 97.44 to 8,978.60 and the broader Topix index increased 0.8% or 6.20 to 751.84.

Stock Movers

Oki Electric Industry Co., Ltd dropped 33% or 41 yen to 81 yen after the maker of automated teller machines was placed on a review list that may to lead to delisting after it Spanish subsidiary was found to overstate its financial results.

The company earlier said it discovered aggressive accounting practice at Oki Systems Iberica which could lead to losses of about 8 billion yen or $100 million over several years.

Honda Motor Co. increased 24 yen to 2,559 yen and Nissan Motor Co Ltd closed unchanged at 778 yen after U.S. monthly sales increased more than expected.

Nippon Steel rose 3 yen to 166 yen and JFE Holdings Inc advanced 43 yen to 1,109 yen.

Canon Inc decreased 12 yen to 2,722 yen, Seiko Epson Corp closed unchanged at 525 yen and Ricoh Co Ltd gained 4.5% to 630 yen. Sony Corp closed up 10 yen at 922.

Panasonic Corp increased 12 yen to 577 yen and Toshiba rose 4 yen to 271 yen.

Nikon plunged 184 yen or 8.1% to 2,086 yen and extended the loss to the second day after it reported weak results and guided weak outlook after the close yesterday.

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 1.6% to 191 yen, Nintendo Co. Ltd closed up 230 yen at 8,600 yen and Fujitsu added 1.6% to 314 yen.

Pioneer fell 0.5% to 198 yen after it lowered its net income growth projection to 15% to 8.5 billion yen.

Sanken Electric Co Ltd dropped 7.7% or 22 yen to 264 yen after it reported earnings in the quarter to June that met expectations but sales orders for fan motors in China have steadied and sales at its U.S. unit are falling.

Fanuc Ltd advanced 220 yen to 12,570 yen and Komatsu Ltd gained 14 yen to 1,699 yen and Hitachi Construction Machinery Co added 5 yen to 1,452 yen.

Dainippon Screen Manufacturing Co declined 2.9% to 458 yen and extended losses for the second day after it lowered its net income outlook 96% to 500 million yen.

Yamada Denki increased 0.6% or 25 yen to 3,995 yen. Nitori Holdings Co slipped 10 cents to 7,490 yen, apparel retailer Shimamura up 1.2% to 9,100 yen and Sagami Co rose 1 yen to 100 yen.

Fast Retailing Co. advanced 390 yen to 17,610 yen and J. Front Retailing Co. Ltd closed unchanged at 391 yen.

Kajima Corp rose 1 yen to 234 yen and Taisei Corp added 2 cents to 224 yen. Sekisui House Ltd closed unchanged at 741 yen and Daito Trust Construction Co Ltd increased 20 yen to 7,770 yen.

Tokyo Tatemono Co., Ltd added 4 yen to 295 yen and Mitsui Fudosan gained 7 yen to 1,533 yen and Sumitomo Realty & Development Co. rose 1 yen to 1,977 yen.

Kansai Electric Power Company, Inc increased 20 yen to 678 yen.

Inpex Corp added 1.4% to 468,000 yen and Japan Petroleum Exploration Co. advanced 40 yen to 3,115 yen.

Mitsui O.S.K. Lines, Ltd fell 1 yen to 234 yen, Kawasaki Kisen Kaisha, Ltd rose 1 yen to 117 yen and Nippon Yusen K.K. slid 2 yen to 176 yen.

Mitsubishi UFJ Financial Group fell 1 yen to 374 yen and Sumitomo Mitsui Financial Group gained 18 yen to 2,537 yen. Nomura Holdings, Inc added 4 yen to 282 yen.

Tokio Marine increased 9 yen to 1,827 yen and Mito Securities up 1.4% to 139 yen.

Credit Saison Co Ltd added 9 yen to 1,852 yen.