Realty, Financials Lift Tokyo Stocks

123jump.com Staff
02 May, 2008
New York City

Stocks in Japan rose sharply after the yen fell to a 2-year low. Investors returned to stocks on he falling commodities and crude oil futures prices and rising optimism related to credit market. In Tokyo trading Nikkei 225 rose 2.05% or 282.4 to 14,049.26, rising 1.3% for the week, and the broader Topix Index increased 2.3% or 31.29 to 1,377.39.

[R]5:00AM New York, 7:00PM Tokyo – Stocks in Japan surged on weak yen, easing credit market worries and falling commodities prices.[/R]

Japan stock indexes rose on optimism and investors braved in the equities and hopes that weak yen will sustain exports to the U.S. dollar linked currency countries.

In Tokyo trading Nikkei 225 rose 2.05% or 282.4 to 14,049.26, rising 1.3% for the week, and the broader Topix Index increased 2.3% or 31.29 to 1,377.39.

In the first section of the Toko Stock Exchange 17 billion shares worth 2.3 trillion yen and in the second section 569 million shares valued at 14 billion yen was traded.

Of the Nikkei 225 stocks 192 gained, 28 declined and 5 was traded. Chiyoda Corp led advancers in the index shares with a rise of 9.50%.

Bridgestone receives statement of objections from EU

Bridgestone Corp reported on its Web site that it received a Statement of Objections on May 1, 2008, and its subsidiary in the United Kingdom, Bridgestone Industrial Limited received on April 30, 2008 from the European Commission with respect to alleged anticompetitive behavior in relation to sales of marine hose.

The company it will respond to the Commission’s objections.

A Statement of Objections is a procedural document whereby the European Commission describes its preliminary view in relation to a possible infringement of EU competition law and allows its addressees to present arguments in response. Any final decision by the European Commission is subject to appeal to the European Courts.

Gainers & Losers

Chiyoda Corp. led advancers in the Nikkei 225 index shares with a rise of 9.50% followed by increases in UNY Co. Ltd of 8.87%, Mitsubishi Rayon Co. of 8.13%, in Yokogawa Electric of 7.84%, and Sumitomo Realty of 7.39%.

Realty stocks gained on expectations that conditions on the credit market has improved. Tokyu Land Corp increased 6.29%. Sumitomo Realty increased after the Nikkei reported that the company will likely report annual pretax profit of 124 billion yen.

Exporters also gained after the dollar climbed 0.2% from 104.62 yen, pushing back near a two-month high of 104.89 yen.

Canon advanced 3.05% and Sony increased 2.93%.

Casio Computer led decliners in the Nikkei 225 index shares with a drop of 5.92% followed by losses in Japan Tobacco 4.11%, in Secom Co. Ltd 2.86%, in Kirin Holdings Co. of 2.37%, in Yamaha Corp of 1.68%.

Casio Computer Co. fell after the company yesterday forecast annual net income that fell short of analysts'' estimates. Credit Suisse Group also its rating on the stock to ``underperform.''''

JAL lowered its revenue for fiscal year but increased its earnings estimates

JAL Group revised its forecast for the yearly performance that ended on March 2008 and will release the final data on May 9th.

Compared to the previous forecast, JAL Group’s revised forecast for fiscal 2007 ending in March 2008 operating revenue is now estimated at 2,230.0 billion yen, down 8.0 billion yen or 0.4%.

Operating costs are estimated at 2140.4 billion yen, down by 49.5 billion yen or 2.3%. Ordinary income is now estimated at 90.0 billion yen, up 42.0 billion yen or 87.5%; ordinary income at 69.0 billion yen up 25.0 billion yen or 56.8%; and net income at 16.0 billion yen, up 9.0 billion yen or 128.6%.

If a company registered in Japan at anytime expects net income to change by more than 30% - either up or down - from previously announced forecasts it must notify the Tokyo Stock Exchange.

In the previous week, NTT DoCoMo reported fiscal 2008 annual revenue declined 1.6% to 4.7 trillion yen and net income rose 7.4% to 491 billion yen. The company guided for the current year ending in March 2009 revenue to rise 1.2% to 4.77 trillion yen and net income to increase 2.4% to 503 billion yen. The mobile telecom expects the number of subscribers to increase at the end of March 2009 to 31 million from 22 million at the end of March 2008 as the company offered new discount rate plans.