Nikkei in 3-day Rally with 1.2% Gain, Nikon Cuts Outlook

Nigel Thomas
02 Nov, 2012
New York City

Stocks in Tokyo surged for the third day in a row following the gains in New York and the yen weakened. Sharp and Panasonic extended declines after estimating sharply higher losses. Also, Nikon lowered its outlook.

[R]7:00 PM Tokyo – Stocks in Tokyo surged for the third day in a row following the gains in New York and the yen weakened. Sharp and Panasonic extended declines after estimating sharply higher losses. Also, Nikon lowered its outlook.[/R]

Stocks in Tokyo jumped and followed the gains in New York after the U.S. confidence index increased to a 4-year high and Japanese automaker reported rising U.S. sales.

The Nikkei 225 Stock Average jumped 104.35 or 1.2% to 9,051.22 and the broader Topix Index increased 8.77 or 1.2% to 752.09. For the week, the Nikkei climbed 1.3%.

The yen dipped to 80.26 to a dollar and traded at 103.99 against the euro.

In trading, 1.88 billion shares changed hands compared to 1.85 billion shares in Thursday’s trading.

Stocks in Review

Sharp Corp declined 2.4% and extended losses for the third day this week after the company projected full-year net loss of $5.6 billion and said it may not survive.

Japan Airlines Co Ltd jumped 65 yen to 3,900 yen and All Nippon Airways slid 0.6% to 167 yen.

Japan Tobacco increased 0.8% to 2,235 yen.

Mitsui O.S.K. Lines, Ltd lowered 2 yen to 193 yen and Kawasaki Kisen Kaisha, Ltd gained 4 yen to 110 yen and Nippon Yusen K.K. added 2 yen to 160 yen.

Toyota Motor Corp. climbed 50 yen to 3,140 yen after it reported U.S. sales increased more than 12% and Honda Motor Co. jumped 78 yen to 2,467 yen after U.S. sales gained 8.8% in October.

Nissan Motor Co Ltd increased 14 yen to 686 yen.

Mazda Motor Corp added 1.9% 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 added 2 yen to 178 yen and JFE Holdings Inc climbed 25 yen to 1,155 yen. Tokyo Steel Manufacturing added 2 yen to 259 yen.

Fujikura Ltd down 0.4% to 223 yen after the company lowered its full-year net income forecast 50% to 2 billion yen on higher competition at home and abroad.

TDK extended the loss by 26 yen to 2,830 yen after the company lowered its full year outlook yesterday.

Murata Manufacturing Co jumped 25 yen to 4,200 yen and Meiko Electronics Co Ltd up 0.3% or 635 yen.

Shimano Inc advanced 200 yen to 5,090 yen.

Ricoh Co Ltd gained 5 yen to 6566 yen, Sony Corp increased 19 yen to 934 and Seiko Epson Corp added 5 yen to 445 yen.

Sony Corp reported a small quarterly operating profit and retained its full-year operating profit outlook of 130 billion yen.

Canon Inc advanced 11 yen to 2,589 yen, Nikon plunged 125 yen or 6.1% to 1,928 yen after it lowered full year operating profit outlook by 15% to 72 billion yen and blamed lower capital spending in electronic chip making industry.

Olympus Corp. climbed 1% to 1,386 yen.

Nintendo Co. Ltd dropped 70 yen to 10,230 yen, Fujitsu slipped 5 yen to 294 yen and Pioneer Corp. closed unchanged at 189 yen. Sharp Corp declined 4 yen to 165 yen.

Panasonic Corp slid 3 yen to 411 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.

Fanuc Corp. jumped 490 yen to 13,350 yen and Komatsu Ltd climbed 63 yen to 1,786 yen. Hitachi Construction Machinery Co advanced 51 yen to 1,420 yen.

Sumitomo Heavy jumped 6.5% to 306 yen after the machinery maker estimated operating profit in the six months to September were 17.4 billion yen.

FamilyMart Co Ltd, the convenience chain operator dropped 35 yen to 3,810 yen and Lawson declined 70 yen to 5,800 yen. Ito En Ltd gained 15 yen to 1,536 yen.

Seven & I Holdings Co added 3 yen to 2,471 yen.

Yamada Denki slumped 30 yen to 3,425 yen. Nitori Holdings Co gained 20 yen to 6,450 yen, apparel retailer Shimamura slipped 10 yen to 8,260 yen and Sagami Co slid 1 yen to 119 yen.

Fast Retailing Co. dropped 20 yen to 17,420 yen and J. Front Retailing Co. Ltd up 5 yen to 417 yen.

Inpex Corp decreased 1% to 440,000 yen and Japan Petroleum Exploration Co. declined 46 yen to 2,901 yen. Tokyo Electric Power Co, Inc. added 2 yen to 134 yen.

Mitsubishi UFJ Financial Group up 4 yen to 362 yen and Sumitomo Mitsui Financial Group climbed 40 yen to 2,475 yen. Nomura Holdings, Inc jumped 12 yen to 298 yen.