Softer Yen Lifts Nikkei in Tokyo; Hitachi Metals, Nintendo, Sharp in Focus

Nigel Thomas
25 Oct, 2012
New York City

The Nikkei index gained as the yen dropped to the lowest since June and the expectations of another round of measures from the Bank of Japan next week. Nintendo and Sharp fell on earnings worries and Hitachi Metals lowered operating earnings outlook.

[R]7:00 PM Tokyo – The Nikkei index gained as the yen dropped to the lowest since June and the expectations of another round of measures from the Bank of Japan next week. Nintendo and Sharp fell on earnings worries and Hitachi Metals lowered operating earnings outlook.[/R]

The Nikkei index in Tokyo gained as the yen softened to the lowest since June and on the expectations that the central bank may offer more stimulus measures after the meeting next week.

The Nikkei 225 Stock Average advanced 100.90 or 1.1% to 9,055.20 and the broader Topix Index increased 8.15 to 751.42.

The yen weakened against the dollar to 80.25 and dropped to a 4-month low.

Stocks in Review

Sharp Corp declined 4.2% after the Nikkei business daily said that the TV maker may post 400 billion yen loss, twice the amount earlier expected, on higher restructuring costs.

Nintendo Co Ltd gained 3.2% after it lowered its annual net income outlook to 20 billion yen from 35 billion yen estimated in July.

Hitachi Metals soared 6% after the company lowered its operating net income estimate to 42.5 billion yen from 50 billion yen, the cut in profit estimate was lower than expected by investors.

Japan Airlines Co Ltd decreased 0.1% to 3,840 yen and All Nippon Airways added 0.6%.

Japan Tobacco slid 0.2% to 2,314 yen.

Mitsui O.S.K. Lines, Ltd slid 1 yen to 190 yen and Kawasaki Kisen Kaisha, Ltd closed unchanged at 99 yen and Nippon Yusen K.K. up 1 yen to 149 yen.

Nippon Electric Glass dropped 7.9% after investors were disappointed with the outlook for earnings.

KDDI jumped 5.5% to 6,370 yen after the company offered to acquire Jupiter Telecom with more than half the cable subscriber penetration for 216 billion yen.

Toyota Motor climbed 40 yen to 3,135 yen and Honda Motor Co. jumped 35 yen to 2,590 yen and Nissan Motor Co Ltd gained 13 yen to 703 yen.

Nippon Steel increased 8 yen to 175 yen and JFE Holdings Inc surged 57 yen or 5.3% to 1,136 yen. Tokyo Steel Manufacturing advanced 11 yen 4.3% to 265 yen.

TDK plummeted 52 yen to 2,948 yen, Murata Manufacturing Co dropped 50 yen to 3,975 yen and Meiko Electronics Co Ltd slipped 0.9% or 627 yen.

Canon Inc jumped 58 yen to 2,645 yen and Seiko Epson Corp added 2 yen to 471 yen and Ricoh Co Ltd slipped 9 yen to 733 yen after the U.S. rival and maker of printer and copiers reported lower than expected revenues and cut its full-year earnings estimate.

Sony Corp slumped 11 yen to 958.

Panasonic Corp slipped 7 yen to 507 yen and Nikon jumped 31 yen to 2,074 yen and Toshiba Corp. gained 6 yen to 289 yen.

Olympus Corp. added 0.4% to 1,400 yen, Nintendo Co. Ltd advanced 300 yen to 10,610 yen, Fujitsu up 4 yen to 309 yen and Pioneer Corp. gained 3 yen to 194 yen. Sharp Corp dropped 7 yen or 4.2% to 160 yen.

Fanuc Corp. declined 70 yen to 12,970 yen and Komatsu Ltd increased 30 yen to 1,690 yen. Hitachi Construction Machinery Co advanced 39 yen to 1,377 yen.

FamilyMart Co Ltd, the convenience chain operator climbed 65 yen to 3,875 yen and Lawson increased 30 yen to 5,910 yen. Ito En Ltd gained 6 yen to 1,556 yen.

Seven & I Holdings Co jumped 36 yen to 2,527 yen.

Yamada Denki advanced 40 yen to 3,260 yen. Nitori Holdings Co increased 210 yen to 6,630 yen, apparel retailer Shimamura jumped 90 yen to 8,340 yen and Sagami Co up 2 yen to 119 yen.

Fast Retailing Co. jumped 450 yen to 17,850 yen and J. Front Retailing Co. Ltd increased 10 yen to 421 yen.

Credit Saison Co Ltd dropped 22 yen to 1,752 yen.

Tokyo Tatemono Co., Ltd lowered 2 yen to 335 yen and Mitsui Fudosan added 3 yen to 1,642 yen and Sumitomo Realty & Development Co. down 1 yen to 2,200 yen.

Inpex Corp up 0.9% to 472,500 yen and Japan Petroleum Exploration Co. declined 20 yen to 3,415 yen. Tokyo Electric Power Company, Inc. added 2 yen to 132 yen.

Mitsubishi UFJ Financial Group up 1 yen to 366 yen and Sumitomo Mitsui Financial Group advanced 21 yen to 2,439 yen. Nomura Holdings, Inc gained 4 yen to 289 yen.