Shin-Etsu, Toshiba and JFE Surge in Tokyo

Sarla Buch
22 Jul, 2009
New York City

Steelmakers surged on the expectations of rising shipments and higher prices. JFE Holdings surged as it expects to increase price for October shipments. Sumitomo Metal Mining plans to increase nickel production in the last quarter of this year. Toshiba increased on higher iPhone sales.

[R]7:00 PM Tokyo, 5:00 AM New York – Steelmakers surged on the expectations of rising shipments and higher prices. JFE Holdings surged as it expects to increase price for October shipments. Sumitomo Metal Mining plans to increase nickel production in the last quarter of this year. Toshiba increased on higher iPhone sales.[/R]

Stocks in Tokyo trading closed higher on weak volume. Investors are awaiting earnings next week from automakers, banks and technology companies.

The Nikkei 225 Index in Tokyo closed higher 71.14 or 0.74% to 9,723.16.

Gainers & Losers

Expectations of higher prices and increased shipments in October bolstered steelmakers. JFE Holdings Inc added 6.1% to 3,300 yen and Nippon Steel increased 2.2% to 360 yen.

Sumitomo Metal Mining decreased 0.8% to 1,385 yen and separately company official in a local interview said that nickel production in the second half of the current fiscal year will be 42% higher from the first half.

Toshiba increased 5% to 378 yen after Apple reported better than expected earnings. iPhone sales surged more than 600%. Toshiba supplies flash memory for the popular phone. Murata Manufacturing increased 0.9% to 4,300 yen and provides switching modules for the phone.

Shin-Etsu surged 4.9% to 4,740 yen after the company confirmed that it is in price negotiating with customers for 300 millimetre wafers. The news was first reported by Nikkei and later confirmed by 123jump.com. Media speculation suggested that the company may seek price increase between 25% and 35%.

On the news, Sumco Corp, the second largest maker of silicon wafers increased 4.6% to 1,579 yen.

Property managers and developers declined sharply. Tokyo Tatemonon decreased 2.6% to 457 yen after the company president in an interview with Nikkei that office vacancy rates will remain high in areas other than Tokyo.

Tokyu Land Corp declined 0.8% to 382 yen and Sumitomo Realty fell 1% to 1,686 and Nomura Real Estate Holdings dropped 2.5% to 1,545 yen.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 71.14 or 0.74% to 9,723.16, Hang Seng index in Hong Kong decreased 253.56 or 1.30% to 19,248.17 and CSI 300 index in China closed higher 67.09 or 1.90% to 3,606.92. ASX 200 index in Australia increased 17.80 or 0.44% to 4,068.50. The FTSE Bursa KL Composite index in Malaysia closed higher 14.00 or 1.23% to 1,148.70.

The Kospi Index in South Korea increased 5.05 or 0.34% to close at 1,494.04. SET index in Thailand closed lower 11.61 or 1.90% to 598.22 and JSE Index in Indonesia decreased 20.94 or 0.98% to 2,125.62. The Sensex index in India decreased 219.37 or 1.46% to 14,843.12.

Nikkei 200 Average Movers

Credit Saison Co, Ltd led the decliners in the Nikkei 225 index of 2.4% followed by losses in Sanyo Electric Co Ltd of 2.4%, in Chuo Mitsui Trust Holdings Inc of 2.1%, in Tokyo Electron Ltd of 2.0% and in Mitsubishi Motors Corp of 1.8%.

Mitsui Chemicals Inc led gainers in the Nikkei 225 index with a rise of 6.8% followed by gains in JFE Holdings Inc of 6.1%, in NSK Ltd of 5.8% and Toshiba Corp of 5.0%.