Shippers Rebound in Tokyo Trading; Itochu and Dole in a $1.6 B Deal

Nigel Thomas
13 Sep, 2012
New York City

Stocks in Tokyo closed higher and the yen firmed for the third day in a row. Shipping companies led the market gainers on the prospect of higher container rates. Murata Manufacturing, Meiko, Sumida and TDK surged after Apple released thinner and faster mobile phone.

[R]7:00 PM Tokyo – Stocks in Tokyo closed higher and the yen firmed for the third day in a row. Shipping companies led the market gainers on the prospect of higher container rates. Murata Manufacturing, Meiko, Sumida and TDK surged after Apple released thinner and faster mobile phone.[/R]

Stocks in Tokyo traded higher after investors bought back shipping stocks and electronics supplier to Apple were in favor.

Freight shipping companies gained on the prospect of an increase container rates on route to Northern Europe but the Baltic Dry Index that tracks rates of different shipping modes declined to the low last seen in 1986.

The Nikkei 225 Stock Average gained 35.19 to 8,995.15 and the broader Topix Index added 2.41 to 744.23.

The yen firmed against the dollar to 77.27 ahead of the Federal Reserve announcement later in the day in Washington.

Stocks in Review

Shipping companies were in focus after freight rate index in London dropped to a new low in 26 years. Separately, Orient Overseas International Ltd lifted its rate by $200 a container for the route between Asia and North Europe.

Mitsui O.S.K. Lines, Ltd soared 12 yen or 6.75 to 192 yen and Kawasaki Kisen Kaisha, Ltd surged 6 yen or 6.3% to 101 yen and Nippon Yusen K.K. gained 6 yen to 140 yen.

Itochu Corp increased 0.8% to 806 yen after third largest trading house said it is in negotiation to buy global processed food business and Asian fruit and vegetable division from Dole Foods. Bankers in the industry estimated the deal to be worth at least $1.6 billion.

Toyota Motor slipped 0.9% to 3,170 yen, Honda Motor Co. decreased 7 yen to 2,622 yen and Nissan Motor Co Ltd down 4 yen to 736 yen.

Nippon Steel gained 3 yen to 168 yen and JFE Holdings Inc climbed 21 yen to 1,113 yen. Tokyo Steel Manufacturing added 1 yen to 278 yen.

Electronic component suppliers to Apple closed higher after the mobile phone maker released its latest phone.

TDK added 3.7% to 3,075 yen, Murata Manufacturing Co gained 2.9% to 4,145 yen and Meiko Electronics Co Ltd jumped 17.1%. Foster Electric and Sumida Corp gained at least 2%.

Canon Inc jumped 47 yen to 2,687 yen and Seiko Epson Corp gained 3 yen to 509 yen and Ricoh Co Ltd increased 4 yen to 644 yen. Sony Corp climbed 20 yen to 950.

Panasonic Corp gained 10 yen to 556 yen after Moody’s rating service lowered its debt rating to Baa1 from A2 and highlighted weakening earnings and large debt load.

Nikon climbed 20 yen to 2,088 yen and Toshiba Corp, closed unchanged at 254 yen.

Olympus increased 1.9% to 1,526 yen, Nintendo Co. Ltd climbed 290 yen to 9,320 yen, Fujitsu slipped 1.3% to 309 yen and Pioneer Corp. slipped 5 yen to 239 yen. Sharp Corp lowered 0.5% to 208 yen.

Fanuc Corp. jumped 240 yen to 13,410 yen and Komatsu Ltd increased 19 yen to 1,609 yen. Hitachi Construction Machinery Co slumped 16 yen to 1,324 yen.

Tokyo Electron Ltd dropped 1.5% and Advantest Corp declined 3.6% after Intel lowered its annual outlook and cut its capital expenditure plan in the year.

Oki Electric gained 3.4% to 92 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 25 yen to 3,805 yen, Lawson slumped 30 yen to 5,790 yen and Seven & I Holdings Co dropped 21 yen to 2,381 yen. Ito En Ltd increased 4 yen to 1,569 yen.

Yamada Denki plummeted 75 yen to 3,570 yen. Nitori Holdings Co jumped 50 cents to 8,110 yen, apparel retailer Shimamura closed unchanged at 9,160 yen and Sagami Co closed unchanged at 120 yen.

Fast Retailing Co. advanced 90 yen to 18,400 yen and J. Front Retailing Co. Ltd gained 5 yen to 424 yen.

Kajima Corp down 2 yen to 214 yen and Taisei Corp lowered 2 yen to 210 yen. Sekisui House Ltd slid 1 yen to 777 yen and Daito Trust Construction Co Ltd jumped 40 yen to 7,860 yen.

Credit Saison Co Ltd increased 7 yen to 1,838 yen.

Tokyo Tatemono Co., Ltd slipped 3 yen to 257 yen and Mitsui Fudosan decreased 11 yen to 1,520 yen and Sumitomo Realty & Development Co. slumped 20 yen to 1,976 yen.

Inpex Corp added 0.5% to 458,000 yen and Japan Petroleum Exploration Co. increased 20 yen to 3,075 yen. Tokyo Electric Power Company, Inc. closed unchanged at 130 yen.

Mitsubishi UFJ Financial Group added 2 yen to 369 yen and Sumitomo Mitsui Financial Group slipped 10 yen to 2,474 yen. Nomura Holdings, Inc grew 1 yen to 287 yen.

Tokio Marine gained 14 yen to 1,987 yen and Mito Securities down 1 yen to 142 yen.