Weaker Yen Lifts Nikkei in Tokyo; TDK, Sharp, Sony Fall on Earnings Outlook

Nigel Thomas
01 Nov, 2012
New York City

The Nikkei average in Japan increased for the second day in a row after the yen softened and China reported first manufacturing advance in October in three months. TDK Corp and Fujifilm Holdings, Sony and Sharp fell on weak quarterly results.

[R]7:00 PM Tokyo – The Nikkei average in Japan increased for the second day in a row after the yen softened and China reported first manufacturing advance in October in three months. TDK Corp and Fujifilm Holdings, Sony and Sharp fell on weak quarterly results.[/R]

Stocks in Tokyo gained for the second day in a row after the yen weakened and China’s manufacturing advanced for the first time in three months in October.

The Nikkei 225 Stock Average climbed 18.58 to 8,946.87 and the broader Topix Index gained 0.99 to 743.32.

The yen dipped to a low of 80.16 to a dollar and traded at 103.89 against the euro.

Stocks in Review

Japan Airlines Co Ltd climbed 35 yen to 3,835 yen and All Nippon Airways slid 0.6% to 168 yen.

Japan Tobacco increased 0.5% to 2,217 yen.

Mitsui O.S.K. Lines, Ltd gained 4 yen to 195 yen and Kawasaki Kisen Kaisha, Ltd added 5 yen to 106 yen and Nippon Yusen K.K. increased 6 yen to 158 yen.

Toyota Motor Corp. climbed 25 yen to 3,090 yen and Honda Motor Co. slid 1 yen to 2,389 yen and Nissan Motor Co Ltd increased 4 yen to 672 yen. Nissan has the largest exposure to Chinese market among the three largest auto makers.

Mazda Motor Corp soared 11% after it lowered its earnings estimate but revised full-year operating profit to 25 billion yen, ahead of market expectation of 23 billion yen.

Nippon Steel closed unchanged at 176 yen and JFE Holdings Inc gained 5 yen to 1,130 yen. Tokyo Steel Manufacturing up 1 yen to 257 yen.

Fujikura Ltd added 0.9% to 224 yen after the company lowered its full-year net income forecast 50% to 2 billion yen on higher competition at home and abroad.

TDK plummeted 141 yen or 4.7% to 2,856 yen after the company lowered its full year outlook, Murata Manufacturing Co surged 320 yen or 8.3% to 4,175 yen and Meiko Electronics Co Ltd climbed 2.4% or 633 yen.

Shimano Inc dropped 60 yen to 4,890 yen.

Ricoh Co Ltd decreased 16 yen to 651 yen, Sony Corp declined 39 yen to 915 and Seiko Epson Corp slid 3 yen to 440 yen.

After the close, Sony reported its seventh quarterly loss in a row and Sharp nearly doubled its estimate for the full-year loss.

Canon Inc closed unchanged at 2,578 yen, Nikon jumped 23 yen to 2,053 yen and Olympus Corp. slumped 1.6% to 1,372 yen.

Nintendo Co. Ltd climbed 70 yen to 10,300 yen, Fujitsu slipped 8 yen to 299 yen and Pioneer Corp. down 2 yen to 189 yen. Sharp Corp lowered 3 yen to 169 yen.

Panasonic Corp tumbled daily limit of 100 yen or 19.5% to 414 yen after the electronics maker reversed its estimate for the year to 765 billion yen loss from 50 billion yen profit estimate in May on the weak sales and restructuring costs.

Machinery makers traded higher after China’s statistical agency said that manufacturing expanded for the first time since July.

Fanuc Corp. advanced 150 yen to 12,860 yen and Komatsu Ltd climbed 51 yen to 1,723 yen. Hitachi Construction Machinery Co jumped 58 yen or 4.4% to 1,369 yen.

FamilyMart Co Ltd, the convenience chain operator slumped 25 yen to 3,845 yen and Lawson closed unchanged at 5,870 yen. Ito En Ltd gained 19 yen to 1,521 yen.

Seven & I Holdings Co increased 6 yen to 2,468 yen.

Yamada Denki slid 5 yen to 3,455 yen. Nitori Holdings Co declined 90 yen to 6,430 yen, apparel retailer Shimamura dropped 50 yen to 8,270 yen and Sagami Co added 2 yen to 120 yen.

Fast Retailing Co. plummeted 340 yen to 17,440 yen and J. Front Retailing Co. Ltd slid 3 yen to 412 yen.

Inpex Corp decreased 2.3% to 444,500 yen and Japan Petroleum Exploration Co. slumped 58 yen to 2,947 yen. Tokyo Electric Power Co, Inc. added 2 yen to 132 yen.

Mitsubishi UFJ Financial Group down 3 yen to 358 yen and Sumitomo Mitsui Financial Group slipped 9 yen to 2,435 yen. Nomura Holdings, Inc slid 2 yen to 286 yen.