Nikkei Up 0.6%, Industrials and Banks Lead

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

Market averages in Asia rallied and in Tokyo Nikkei 225 index jumped 0.6%. Of the 225 stocks in the index, 103 closed higher led by industrials, banks, and brokerage stocks. Shipping lines led the decliners. Alpine Electronics soared 13% after revising first half earnings. softbank first quarter income soared to 25.1 billion yen from 1.42 billion yen on one time gains. Monthly revenue per subscriber dropped to 5,000 yen from 5,210 yen.

[R]7:00AM New York, 8:00PM Tokyo – Broad rally in Tokyo trading lifted averages.[/R]

Nikkei 225 closed 107.51 or 0.6% higher to close at 17,029.28. Topix index rose 8.9 or 0.5% to close at 1,669.02.

In broad rally industrials, international trading companies, banks, and brokerage companies led the advances in indexes. Government also reported that June machinery orders fell 10.4% dragging most machinery stocks lower led by 5% loss in Komatsu.

Asian markets rallied across the region led by a sharp gain in Indonesia, Singapore, Australia, and India. The Federal Reserve Bank in Washington left key interest rate unchanged at 5.25% and supported a view that economic growth is not likely to be affected by current problems in the subprime mortgage market. The bank also said that fighting inflation is its main focus.

Of the 225 stocks in the Nikkei index 118 closed higher, 103 declined, and 4 were unchanged. CSK Holdings and Trend Micro led the index stocks with 11% surge. Two days ago, Trend Micro revised its sales guidance for the current quarter by 11% and earnings by 65%. Nippon Sheet Glass, Daikin Industries, and Resona Holdings jumped 8% in the rally.

Shinsei Bank, Bank of Yokohama, Mizuho Holdings, and Mitsubishi UFJ gained more than 3.5%.

Eleven stocks in the index fell 5% or more led by Taiheiyo Cement with a loss of 8%. Shipping companies, Kawasaki Kisen Kai Sha and Mitsui OSK Lines fell 7%.

Daikin first quarter profit nearly doubled to 265. billion yen and company revised its guidance for the operating profit for the full year. The stock closed up 8.22% to 4,950 yen.

Trend Micro, Internet security and software provider, jumped 11% on top of 14% surge in previous session. 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%.

Alpine Electronics, maker of audio systems for vehicles, soared 13% to close at 2,045 yen on 20% revised guidance for the first half income to 3 billion yen. Earlier the company had guided for the full year 255 billion yen in sales and 5 billion yen earnings.