Asian Markets Climb, Japan Reverses Early Gains

123jump.com Staff
07 Aug, 2007
New York City

In early trading in Tokyo Nikkei gained close to 1%. In the afternoon trading market average lost its gain and closed a fraction higher. Fall in oil and commodities trading related stocks and banks led the decliners. Banks and brokerage stocks opened sharply higher, nearly 3%, but lost most of the gain by the end of the day. Trend Micro, Internet security provider, revised its sales guidance for the second quarter by 11% and earings by 68%. Emerging markets in the region closed higher.

[R]7:00AM New York, 8:00PM Tokyo – Market opened higher but steadily lost its gain the afternoon trading.[/R]

Nikkei 225 closed 7.31 or 0.04% higher to close at 16,921.77. The index opened nearly 1% higher but gave up most of its gains on weakness in banking and commodities related stocks. Topix index fell 0.5% or 7.8 to close at 1,660.01

Toyota is planning to increase its global of production of vehicles to 10.5 million vehicles. According to a report in local business newspaper, the Nikkei Weekly, in a recent meeting with parts suppliers the company is targeting higher global sales to meet rising demand. Toyota last week reported 32% rise in quarterly earnings on 16% gain in sales and planned to produce 8.9 million vehicles in the fiscal year ending in March 2008.

According to Bloomberg news Shinsei Bank Ltd reported accumulated losses from subprime lending in the U.S. of $30 million and has exposure of $200 million to mortgage bond market. After the news the stock jumped 8% but closed 3.3% higher at 430 yen.

Trend Micro, Internet security and software provider, jumped 14% or 500 yen to close at 4,100 yen. The company revised its guidance for the second quarter sales to 25 billion from 22.5 billion yen and earnings to 6.2 billion yen from 3.7 billion yen. The sales were revised up 11% and earnings were revised up 67%.

Japan Steel Works soared 5.8% to close at 1,926 after reporting 300% increase in earnings to 7.9 billion yen.

Softbank said that it has added 224,000 mobile users in the month of July.

Nomura Holdings lost its gain of 3% in the morning trading to close up 0.5% to 2,145 yen. The brokerage company in the previous week had reported a sharp rise in earnings on higher trading and brokerage revenue. Mizuho Financial after reversing from an earlier gain of 2.2% to close 2% lower at 687,000 yen. In the last week the company reported lower that expected earnings.

Oil closed sharply lower in the international markets with a loss of 5% dragging energy and trading companies. Inpex, oil explorer, fell 8% to 90,000 yen. Mitsui & Company fell 5.2% and Mitsubishi dropped 4.5%.