Tokyo Surges 6.3%, Interbank Rates Fall

123jump.com Staff
04 Nov, 2008
New York City

The benchmark Nikkei 225 index surged 6.3%. Panasonic proposal to acquire Sanyo Electric lifted stocks. Lower than expected decline in Japanese auto sales in the U.S. and a decline in interbank rates contributed to the positive mood.

[R]5:00AM New York, 7:00PM Tokyo - Japan''s wages increase 0.1% to 273,175 yen in September. Panasonic Proposes to acquire Sanyo Electric Co.[/R]

Stocks in Japan leapt to a two-week high after the country''s interbank rate fell the most since December 1999.

Panasonic acquisition of Sanyo to create one of largest electronic companies helped the trading sentiment.

The Nikkei 225 Index in Tokyo closed higher 537.62 or 6.27% to 9,114.60, and the broader Topix Index advanced 6.3% or 537.62 to 9,114.60.

In the first section of the Tokyo Stock Exchange 22.5 billion stocks worth 1.9 trillion yen were traded and in the second section 355 million shares valued at 3.2 billion yen changed hands.

Of the Nikkei 225 index stocks, 210 rose, 12 declined, and 3 were unchanged. Sanyo Electric led advancers in the index shares.

Japan Wages Rise 0.1% to 273,175 yen in September

The Ministry of Labor, Health and Welfare reported today that total cash earnings and contractual cash earnings both increased 0.1% to 273,175 yen and 269,257 yen respectively.

Scheduled cash earnings gained 0.4% to 250,529 yen, but non-scheduled cash earnings dropped 3.3% to 18,728 yen. Special cash earnings declined 2.5% to 3,918 yen.

Total hours worked edged up 0.2% to 148.9 hours, with scheduled cash earnings increasing 0.4% to 138.4 hours.

However non-scheduled cash earnings declined 2.7% to 10.5 hours.

In addition, regular employment increased 1.4% to 45 million, with full-time and part time employment rising 1.4% to 33.2 million and 1.6% to 11.8 million.

Yen Rises

The yen rose to 66.73 against the Australian dollar after the Reserve Bank of Australia reduced its interest rate by 0.75 basis points to 5.25%.

Yen also gained to 98.94 from 99.12 against the U.S. dollar yesterday.

Separately, the country''s three-month interbank rate fixed in Tokyo, or Tibor, dropped in tandem with the decline in London interbank offered rate, falling the most since December 1999.

Gainers & Losers

Sanyo Electric led advancers in the Nikkei 225 index shares with a rise of 34.5% followed by increases in GS Yuasa Corp. of 323.8%, in Minebea Co. of 21.6%, in Sumco Corp. of 19.4%, and Nippon Sheet Glass of 18.7%.

Sanyo Electric rose after Panasonic proposed to acquire Sanyo Electric from its controlling shareholder, Goldman Sachs, Sumitomo Mitsui Banking Corp. and Daiwa Securities SMBC Co.

Nissan Motor Co. led decliners in the Nikkei 225 index shares with a fall of 10.6% followed by losses in Nikon Corp. of 6.1%, in Daiichi Sankyo of 4.9%, in Asahi Glass Co. of 4.6%, and Mitsui OSK Lines of 2.8%.

Nissan Motor Corp declined after its October U.S. sales dipped 33%.

Shipping lines also fell on rising expectations that demand for raw materials will slow on turbulence in the global financial markets. Mitsui & Co declined 0.1% as a result.

Bridgestone Profit Falls

Bridgestone Corp. reported today that profit in the three quarters ended September declined 40% to 49.5 billion yen from 82.3 billion yen a year earlier on rising raw material costs and slowing demand.

Revenues in the period gained 1.3% to 2.5 trillion yen.

Domestic sales fell 1%.

Japan''s Carmakers October Sales Plummet

U.S. auto sales declined 32% and Asian makers’ sales fell 27% in October from a year ago, according to the latest data released by the industry researcher Autodata.

Honda and Hyundai are the only tow companies that managed to increase their passenger car sales in the year but sales at two auto companies in October declined along with the industry wide weakness.

In all, Asian auto sales in the month fell 27% to 371,791 from 506,327. The decline in the month was lower than 30% in September.

Toyota Motor Sales U.S.A. in the October month dropped 23% to 152,101 from 197,592 a year ago and year-to-date sales fell 11.5% to 1.95 million from 2.2 million a year ago period.

Passenger car sales fell 31% to 24,957 from 36,115 a year ago and year-to-date sales dropped 6% to 1.2 million from 1.3 million a year ago period.

Total light truck sales in the month fell 34% to 57,865 from 87,334 a year ago month and year-to-date sales declined 14% to 484,887 from a year ago period.

American Honda Motor Company auto sales in the month dropped 25% to 85,864 from 114,799 a year ago and year-to-date sales declined 3.2% to 1.27 million from 1.31 million.

Honda passenger car sales in the month declined 22% to 51,400 from 66,015 and year-to-date sales rose 781,560 from 743,794 in the prior year period.

Total light truck sales declined 52% in the month to 17,893 from 37,135 a year ago and year-to-date sales fell 14% to 484,887 from 564,525 a year ago period.

Nissan North America Inc sales in October declined 33% to 56,945 from 84,947 a year ago and for the first ten months sales fell 6.2% to 842,643 from 898,000 in the prior year period.

Passenger car sales in the month declined 18% to 39,052 from 47,812 a year ago and for the year-to-date period declined 2% 525,701.

Light truck sales fell 52% in the month to 17,893 from 37,135 a year ago and the year-to- date sales fell 12.3% to 316,942 from 361,527.

Mazda Motor of America sales in the month fell 26% to 16,442 from 22,201 a year ago and year-to-date sales declined 7.5% to 231,850 from 250,597 in the prior year period.

Passenger car sales in the month fell 21% to 10,702 and light truck sales declined 46% to 5,942. For the year-to-date period sales passenger car sales fell 8.5% to 156,051 and light truck sales declined 5.4% 75,799.

Mitsubishi Motors N.A. Inc auto sales in the October month dropped 19% to 7,486 and for the year declined 24% to 87,591.

Passenger car sales in the month dropped 21% to 10,702 and for the year declined 10% to
68,364. Light truck sales in the month declined 33.5% to 5,740 from a year ago and sales for the year declined 5.4% to 75,799.

Hyundai Motor America auto sales in October declined 31% to 20,820 and year sales fell 7.8% to 358,484.

Passenger car sales in the month declined 22.6% to 14,878 and for the year rose 6.4% to 250,885. Light truck sales plunged 46% to 5,942 and in the year sales declined 33% to 91, 605.