Hitachi Loss Estimate, Tokyo Stocks Fall

123jump.com Staff
02 Feb, 2009
New York City

Stocks in Tokyo trading declined 1.5% after Hitachi estimates a loss in the current year. The sharp reversal in the estimate from profit only highlights the widening global recession affecting trade between Japan, China and the U.S. In another confirmation, the office vacancy rose in Tokyo.

[R]5:00AM New York, 7:00PM Tokyo – The sharp reversal in estimate of a loss at Hitachi put investors on the defensive. Hitachi stock plunged 17% and the benchmark stock index declined 1.5%. Tokyo office vacancies rise.[/R]

Japan stocks plunged 1.5% after Hitachi revised its profit forecast for the fiscal year through March as demand slackens. The technology conglomerate estimated current fiscal year annual loss compared to a profit estimated previously.

In Tokyo trading Nikkei 225 index fell 1.5% or 120.07 to 7,873.98, and the broader Topix Index shed 2% or 16.18 to 777.85.

In the first section of the Tokyo Stock Exchange 9.3 billion shares worth 545 billion yen were traded and in the second section 129 million shares valued at 1.4 billion yen changed hands.

Of the Nikkei 225 index stocks, 58 increased, 155 declined, and 12 were unchanged. Minebea led gainers in the index shares with a rise of 14.3% followed by Heiwa Real Estate of 7.2%.

Hitachi Estimates 700 billion yen Loss

Hitachi revised its net income forecast for the year ending March 31 to a loss 700 billion yen from earlier projected profit of 15 billion yen.

Operating income forecast fell 90.2% to 40 billion yen from 410 billion yen earlier, while revenues are projected to decline 8.1% to 10 trillion yen from 10.9 trillion yen.

The company noted sharp drop in demand for automobiles, semiconductors, and industrial equipment.

Operating income will plunge on sharp earnings decline in power & international systems, digital media & consumer products and high functional & components segment.

Japan Pledges 1.5 trillion yen billion for Asia

Kyodo News reported today Japan''s Prime Minister Taro Aso will pledge 1.5 trillion yen to help cushion the Asian region from the turbulence on the global financial market.

In November, Japan announced plans to contribute $100 billion to the International Monetary Fund.

Tokyo Office Vacancies Rise 3%

Nikkei News reported today that office vacancy rate in central Tokyo''s business districts increased three percentage points to 3% in the three months to December from the same period a year ago.

Gainers & Losers

Minebea Ltd. led gainers in the Nikkei 225 index shares with a rise of 14.3% followed by increases in Heiwa Real Estate of 7.2%, in Nippon Oil of 7%, in Showa Shell of 7%, and Mitsui OSK Lines of 5.7%.

Energy stocks increased as crude oil prices jumped to $44 per barrel.

Hitachi Ltd. led decliners in the Nikkei 225 index shares with a decline of 17% followed by losses in Toshiba Corp. of 10.4%, in NTN Corp. of 10.3%, in Mizuho Financial Group of 9.8%, and Mitsubishi Electric Corp. of 9.1%.

Paper stocks declined on rising oil prices. Hokuetsu Paper fell 7.8% and Nippon Paper shed 7.6%.