Realty Sector Weak Spot in Tokyo

123jump.com Staff
06 Sep, 2007
New York City

Tokyo market closed higher after declining for three days in a row. Nikkei 225 index closed up 0.6% but traded as low as 2% in the morning trading. The volatile U.S. markets have kept investors in Japan on the side line and trading volume remain near low levels. Digital camera exports surged 35% in July. Nissan and Renault are in talks with Bajaj Auto to make $3,000 car in India. Real estate stocks fell for the second week. Investors worried that the U.S. subprime crisis will hurt sector.

[R]7:00AM New York, 8:00PM Tokyo - Japanese stocks rebound in volatile trading Thursday on weak U.S housing market data. Japan digital camera exports jumped 35% in July. Nippon Steel lifts profit estimates.[/R]

Tokyo finished up 0.61% paring losses of as much as 2% in morning trade. Investors remain uncertain and concerned with the events in the credit markets. The continued volatility in the U.S. and unknown scale of exposure and losses emanating from sub-prime lending in its banking system keeps investors on the sidelines. Yesterday Nikkei 225 fell 1.6%, the heaviest since decline this week.

Of the 225 Tokyo shares, 122 stocks gained, 93 dropped while 10 remained unchanged. Of the index stocks, 32 shares gained over 2%.

Nikkei 225 in Tokyo trading ended up 0.6% or 98.55 at 16,257.00 recovering from early morning losses caused by reports U.S. homes sales plunged 12% in July. Technology shares rebound on higher exports. The yen gained sharply overnight before retreating to 115.3 per dollar from yesterday’s closing rate of 116.1.

The Japan Camera and Imaging Products Association announced Wednesday digital camera exports surged 34.7% to 7.3 million units in July from a year ago, driven by single-lens reflex models. Shipments in value terms rose 24.4% to 153.3 billion yen while exports of digital SLR cameras were up 35% to 580,000 units. Digital camera exports in July expanded 38.2% to 6.45 million units. Exports to Europe grew 39%, North America up 37.8% and rest of Asia soared 31%.

Of the Nikkei 225 stocks, Nippon Oil Corp led gainers rallying 9.1% helped by firmer global oil prices followed trading firm, Itochu Corp up 5.1%. Tosoh Corp finished higher 4.6%, Softbank Corp added 4.51% and Toray Industries rose 4.22%. Technology related stocks Minebea Co Ltd, Trend Micro Inc, KDDI Corp, NTT Data Corp rose 3.31%, 2.8%, 2.5% and 2.1% respectively.

Of the index shares, real estate, financial and industrial stocks dropped. Hitachi Zosen paced decliners slumping 11.5% while giant land developer Sumitomo Realty plunged 4.3% after stronger gains Wednesday. Tokyu Land Corp fell 4.23%, Daiwa Securities Corp down 3.64% and Kayima Corp lost 3.5%.

Steelmaker, Nippon Steel said Thursday it will pay a 5-yen per share dividend in the interim to September, up from 1-yen per share 12 months ago, according to its revised profit estimates. The group predicts net earnings in the half-year will climb to 170 billion yen, from earlier forecasts of 160 billion yen. Nippon Steel targets profit before tax will rise to 280 billion yen from 270 yen, as previously expected. The shares closed up 1.8% in Tokyo.

Marubeni Corp ended higher 1.43% after reporting Wednesday its U.S unit, Marubeni American Corp had acquired shares in Canadian trailer hiring firm, Train Trailer Rentals Ltd. No figures were released. Train Trailer has engaged in leasing business for dry and refrigerated freight trailers and container chassis for 35 years, according to Marubeni.

Nissin Food Products Co said Wednesday it will raise the prices of almost its entire instant noodles in January by between 7% and 11%, for the first time in 17 years, owing to rising international wheat prices. Already, there are concerns that firming world wheat