Japan Stocks Rebounded, Nippon Yusen and Yokohama Rubber In Focus

Akira Ito
23 Jul, 2024
Tokyo

Japan stocks rebounded and halted a 4-day decline following a rise in tech stocks. 

The Nikkei 225 gained 0.1% and the Topix index rose 0.3% after the tech stocks mirrored the gain in overnight trading in New York. 

The yen drifted higher to 156.65 against the U.S. dollar as investors suspected that the central bank continued its effort to shore up the weak yen. 

Toshimitsu Motegi, the general secretary of the ruling Liberal Democratic Party, urged the Bank of Japan to clearly communicate its plan for ending massive stimulus and avoiding an excessive decline in the yen. 

The comments of the senior ruling party leader come ahead of the Bank of Japan's policy meeting at the end of the month, and investors are hoping that the central bank will cut down sharply on its monthly 6 trillion yen bond purchase program. 

 

Japan Stock Movers 

The Nikkei 225 stock average increased 0.1% to 39,643.39, and the Topix index advanced 0.3% to 2,834.79. 

Ocean Transportation Company stocks were focused on the tight container shipment market and rising rates for trans-Pacific routes. 

Kawasaki Kisen jumped 6.4% to ¥2,395.50, Nippon Yusen gained 8.2% to ¥4,825.0, and Mitsui OSK gained 5.4% to ¥4,810.0. 

Nippon Yusen upwardly revised its financial outlook for the fiscal first half and 2025, citing higher ocean freight rates, positive trends in its air cargo and bulk shipment business, and a weaker yen. 

The company revised its first-half revenue to 1.295 trillion yen from 1.165 trillion yen in the previous estimate, net profit attributable to shareholders to 250 billion yen from 135 billion yen, and earnings per share to 547.80 yen from 294.03 yen.

The company revised its annual revenue outlook to 2.57 trillion yen from 2.25 trillion yen, its net income to 390 billion yen from 245 billion yen, and its earnings per share outlook to 855.9 yen from 533.6 yen. 

The company said it has completed the purchase of 4.32 million of its own shares and reiterated its commitment to complete its 100 billion yen or as many as 35 million share repurchase plan. 

Yokohama Rubber soared 7.5% to ¥3,539.0 after Goodyear announced its plans to sell its off-the-road tire business to the company for $905 million in cash. 

Goodyear will retain its business providing OTR tires for U.S. military and defense applications and Goodyear will manufacture certain OTR tires for Yokohama at some of its manufacturing locations for an initial period of up to five years after the closing of the transaction.