Nikkei Halts 3-Day Decline, Apple Suppliers Under Pressure

Nigel Thomas
24 Jan, 2013
New York City

Stocks in Tokyo gained for the first time in four days after manufacturing expanded at the fastest pace in five months. The components makers for Apple declined after the phone maker reported stagnant earnings.

[R]5:00 PM Tokyo – Stocks in Tokyo gained for the first time in four days after manufacturing expanded at the fastest pace in five months. The components makers for Apple declined after the phone maker reported stagnant earnings.[/R]

Japanese stocks gained for the first time in four days after the latest manufacturing survey from China indicated continued strength.

The Purchasing Managers’ Index increased to 51.9 in January, ahead of expectations, and increased for the fifth month in a row to a new high. The preliminary index above 50 indicates an expansion in manufacturing.

The Nikkei 225 Stock Average jumped 133.88 or 1.3% to 10,620.87 and the broader Topix Index gained 9.83 or 1.1% to 897.62.

The yen gained to 89.55 against one dollar after Deputy Economy Minister Nishimura said the currency’s “correction is not over yet.”

Stocks in Review

Apple Inc reported higher sales and flat earnings that missed expectations set by many analysts. The relative weak results affected the components makers.

The electronics screen panel maker Nissha Printing Co declined 2.3% to 1,420 and the maker of printed circuit boards Ibiden dropped 4.7% to 1,248 yen.

Nidec Corp, the maker of precision motors declined 0.8% to 5,270 yen after it lowered its net income by 91%.

GS Yuasa up 2 yen to 314 yen, IHI increased 5 yen to 235 yen and Fuji Heavy Industries jumped 47 yen or 4.2% to 1,156 yen. All Nippon Airways Co slid 1 yen to 179 yen.

Yasakawa Electric Corp declined 4% after the company reported operating profit below expectations.

Toyota Motor Corp. climbed 90 yen to 4,245 yen and Honda Motor Co. jumped 65 yen to 3,350 yen and Nissan Motor Co Ltd increased 10 yen to 852 yen. Mazda Motor Corp surged 19 yen or 9.1% to 228 yen.

Nippon Steel up 6 yen to 228 yen and JFE Holdings Inc advanced 54 yen to 1,688 yen.

Shimano Inc gained 20 yen to 5,780 yen.

Sony Corp increased 22 yen to 1,189, Canon Inc jumped 25 yen to 3,300 yen and Nikon increased 25 yen to 2,583 yen. TDK Corp gained 30 yen to 3,150 yen after Nikkei business daily said the hard disk maker was estimated to report 30% fall in operating earnings in the December quarter on weak demand for smart phone components.

Nintendo Co. Ltd declined 140 yen to 9,060 yen and Pioneer Corp. slid 2 yen to 203 yen.

Fanuc Corp. slipped 50 yen to 13,900 yen and Komatsu Ltd climbed 51 yen to 2,337 yen. Hitachi Construction Machinery Co increased 36 yen to 1,899 yen.

Softbank Corp gained 8 yen to 2,953 yen.

FamilyMart Co Ltd, the convenience chain operator down 10 yen to 3,610 yen and Lawson advanced 50 yen to 6,340 yen. Ito En Ltd lowered 2 yen to 1,720 yen.

Seven & I Holdings Co slumped 19 yen to 2,605 yen. Fast Retailing Co. gained 220 yen to 22,550 yen and J. Front Retailing Co. Ltd increased 9 yen to 487 yen.

Mitsubishi UFJ Financial Group up 9 yen to 473 yen and Sumitomo Mitsui Financial Group advanced 65 yen to 3,265 yen. Dai-Ichi Life jumped 2.9% to 127,200 yen.

Nomura Holdings, Inc climbed 21 yen to 488 yen on the worries that the stock has run ahead of its fundamentals.

Mitsui O.S.K. Lines, Ltd up 3 yen to 282 yen and Nippon Yusen K.K. rose 2 yen to 210 yen.