Machinery Orders in Japan Rise for the Second Month, Oki Electric Down 11%

Nigel Thomas
12 Sep, 2012
New York City

Stocks in Tokyo surged for the second day in a row after machinery orders increased and investors reacted positively to the comments from Chinese officials. Stocks in resource sector and linked to domestic economy were in favor. Oki Electric plunged 11%.

[R]8:00 PM Tokyo – Stocks in Tokyo surged after machinery orders increased for the second day in a row and investors reacted positively to the comments from Chinese officials. Stocks in resource sector and linked to domestic economy were in favor in trading. Oki Electric plunged 11%.[/R]

Stocks in Tokyo surged as investors snapped up domestic economy linked companies, resource sector stocks and focused on steelmakers.

Trading was brisk ahead of the German court ruling on the legality of the euro zone rescue fund. After the market close, the court approved the setting up of rescue fund but limited Germany’s exposure to the present commitment and required the bailout fund to keep informed German lawmakers.

The Nikkei 225 Stock Average gained 1.7% to 8,959.96 and the broader Topix Index increased 1.3% to 741.82.

The yen gained for the second week in a row and edged lower to 77.89 against one dollar after closing at a 3-month high of 77.70.

Core machine orders increased 4.6% in July after rising 5.6% in June according to the data released by the Cabinet Office today.

The orders were ahead of expectations set by most economists of 2% and increased for the second month in a row.

Stocks in Review

Toyota Motor added 0.9% to 3,200 yen, Honda Motor Co. increased 40 yen to 2,629 yen and Nissan Motor Co Ltd slid 1 yen to 740 yen.

Steelmakers were in demand despite the rise in iron ore price above $100 a ton after comments from Chinese officials showed willingness for additional stimulus if conditions warrant it.

Nippon Steel gained 4 yen to 165 yen and JFE Holdings Inc climbed 41 yen to 1,092 yen. Tokyo Steel Manufacturing increased 4 yen to 277 yen.

Canon Inc jumped 66 yen to 2,640 yen and Seiko Epson Corp gained 6 yen to 506 yen and Ricoh Co Ltd advanced 21 yen to 640 yen. Sony Corp increased 12 yen to 930.

Panasonic Corp climbed 12 yen to 546 yen after Moody’s rating service lowered its debt rating to Baa1 from A2 and highlighted weakening earnings and large debt load.

Nikon jumped 35 yen to 2,068 yen and Toshiba Corp, closed unchanged at 254 yen.

Olympus increased 2% to 1,498 yen, Nintendo Co. Ltd climbed 320 yen to 9,030 yen, Fujitsu slid 0.9% to 313 yen and Pioneer Corp. up 1 yen to 244 yen. Sharp Corp added 0.8% to 209 yen.

Machinery makers gained after the release of core machine orders data in July.

Fanuc Corp. jumped 280 yen to 13,170 yen and Komatsu Ltd slipped 10 yen to 1,590 yen. Hitachi Construction Machinery Co slid 1 yen to 1,308 yen.

Tokyo Electron Ltd gained 1.6% and Advantest Corp increased 1.4% after Intel lowered its annual outlook and cut its capital expenditure plan in the year.

Oki Electric plunged 11% to 89 yen after communication equipment maker said accounting irregularities at its Spanish unit will lower by 30.8 billion yen or nearly $400 million.

FamilyMart Co Ltd, the convenience chain operator climbed 85 yen to 3,780 yen, Lawson advanced 130 yen to 5,820 yen and Seven & I Holdings Co gained 50 yen to 2,402 yen. Ito En Ltd increased 20 yen to 1,565 yen.

Yamada Denki slumped 50 yen to 3,645 yen. Nitori Holdings Co jumped 60 cents to 8,060 yen, apparel retailer Shimamura gained 140 yen to 9,160 yen and Sagami Co down 2 yen to 120 yen.

Fast Retailing Co. advanced 230 yen to 18,310 yen and J. Front Retailing Co. Ltd added 8 yen to 419 yen.

Kajima Corp up 3 yen to 216 yen and Taisei Corp added 4 yen to 212 yen. Sekisui House Ltd increased 11 yen to 778 yen and Daito Trust Construction Co Ltd jumped 100 yen to 7,820 yen.

Credit Saison Co Ltd advanced 38 yen to 1,831 yen.

Tokyo Tatemono Co., Ltd slipped 8 yen to 260 yen and Mitsui Fudosan climbed 25 yen to 1,531 yen and Sumitomo Realty & Development Co. advanced 35 yen to 1,996 yen.

Inpex Corp increased 2.4% to 455,500 yen and Japan Petroleum Exploration Co. jumped 56 yen to 3,055 yen. Tokyo Electric Power Company, Inc. lowered 2 yen to 130 yen.

Mitsui O.S.K. Lines, Ltd slid 3 yen to 180 yen and Kawasaki Kisen Kaisha, Ltd closed unchanged at 95 yen and Nippon Yusen K.K. slipped 5 yen to 134 yen.

Mitsubishi UFJ Financial Group added 5 yen to 367 yen and Sumitomo Mitsui Financial Group increased 25 yen to 2,484 yen. Nomura Holdings, Inc grew 2 yen to 286 yen.

Tokio Marine gained 9 yen to 1,973 yen and Mito Securities up 1 yen to 143 yen.