Tokyo Stocks Surge, Rates Unchaged

123jump.com Staff
30 Apr, 2009
New York City

Japan left its key lending rate 0.1% and lowered its outlook for the current and the next fiscal years. The yen declined against the dollar to 97.8445. Exporters gained in trading. Toyota Motor surged 5.2%, Canon increased 6% and Honda surged.

[R]8:00 PM Tokyo – Stocks in Japan surged after the release of factory output report and the central bank left its key lending rate unchanged.[/R]

Nikkei 225 Stock Average surged 3.9% to 334.49 to close at 8.828.26 after factory output increased and the central bank left its rates unchanged.

The yen declined against the dollar to 97.8445.

Exporters gained in trading. Toyota Motor surged 5.2% to 3,850 yen, Canon increased 6.1% to 2,950 yen and Honda surged 9.4% to 2,845 yen.

Japan Leaves Rates Unchanged

Japan left its key lending rate 0.1% and lowered its outlook for the current and the next fiscal years.

The Bank of Japan now estimates that the economy in the current fiscal year will shrink at 3.1% compared to the previous estimate of 2% in January and forecasted weaker but still recovery in 2010 with growth rate of 1.2% compared to 1.5%. The current revision takes into account the latest stimulus package from the administration of 15.4 trillion yen or $156 billion.

Exports in the last three months have declined sharply as economies in the U.S., Europe and China have slowed.

The central bank will continue to lend directly to corporations and purchase government debts to keep the economic momentum. However, the bank will not expand its current program.

Central bank sounded optimistic outlook and surmised the global economies have started to stabilize and added ‘expected to start recovering.’

Factory Output Surges

Industrial production in February increased at 1.6% lifting the trading sentiment in stock markets and reviving hopes of early signs of economic stabilization. The one month data does not predict a viable trend but the data were sharply higher than forecast from most economists.

Earnings Review

All Nippon Airways Co, the major airline said full-year sales fell 6.4% to ¥1.39 trillion from ¥1.49 trillion a year ago. Net loss was ¥4.26 billion or ¥2.19 per diluted share compared to net profit of ¥64.14 billion or ¥32.93 per share a year ago.

Canon Inc, the world’s largest camera maker said first quarter sales fell 31.8% to ¥687 billion from ¥1.01 trillion a year ago. Net profit fell 83.4% to ¥17.7 billion or ¥121.85 per diluted share compared to net profit of ¥107 billion or ¥157.59 per share a year ago.

Fujifilm Holdings, the top-ranked photo film maker in Japan said full-year sales fell 15% to ¥2.43 trillion from ¥2.85 trillion a year ago. Net profit fell 90% to ¥10.5 billion or ¥21.09 per diluted share compared to net profit of ¥104.4 billion or ¥193.56 per share a year ago.

Fujitsu Ltd, the major industrial electronics maker said full-year sales fell 12% to ¥4.69 trillion from ¥5.33 trillion a year ago. Net loss was ¥112.4 billion or ¥54.35 per diluted share compared to net profit of ¥48.1 billion or ¥23.34 per share a year ago.

Japan Tobacco, engaged in the tobacco industry said full-year sales fell 6% to ¥6.8 trillion from ¥6.41 trillion a year ago. Net profit fell 48% to ¥123.4 billion or ¥12,879.77 per diluted share compared to net profit of ¥238.7 billion or ¥24,916.26 per share a year ago.

Mitsubishi Electric Corporation, a Japanese maker of consumer electronics and factory machinery said full-year sales fell 9.4% to ¥3.67 trillion from ¥4.05 trillion a year ago. Net profit fell 92% to ¥12.2 billion or ¥5.67 per diluted share compared to net profit of ¥158.0 billion or ¥73.59 per share a year ago.

Nippon Oil Corp, Japan''s largest refiner said full-year sales fell 1.8% to ¥7.39 trillion from ¥7.52 trillion a year ago. Net loss was ¥251.6 billion or ¥172.42 per diluted share compared to net profit of ¥148.3 billion or ¥101.49 per share a year ago.

Sapporo Holdings, the major beer brewer said full-year sales fell 11% to ¥81.62 billion from ¥91.65 billion a year ago. Net loss was ¥3.28 billion or ¥8.38 per diluted share compared to net loss of ¥3.34 billion or ¥8.53 per share a year ago.

The Tokyo Electric Power Company, Inc, the Asia''s biggest power utility company said full-year sales rose 8% to ¥5.89 trillion from ¥5.48 trillion a year ago. Net loss was ¥84.5 billion compared to net loss of ¥150 billion a year ago.

Yamaha Corporation, a musical instruments maker said full-year sales fell 16.3% to ¥459.3 billion from ¥548.7 billion a year ago. Net loss was ¥20.6 billion or ¥103.73 per diluted share compared to net profit of ¥39.6 billion or ¥191.76 per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 334.49 or 3.94% to 8,828.26, Hang Seng index in Hong Kong increased 564.04 or 3.77% closed to 15,520.99, CSI 300 index in China higher 17.56 or 0.67% closed to 2,622.93. ASX 200 index in Australia increased 85.20 or 2.31% closed to 3,780.50. The KL Composite index in Malaysia higher 23.28 or 2.41% closed to 990.74.

The Kospi Index in South Korea increased 30.94 or 2.31% to close at 1,369.36. SET index in Thailand closed higher 8.19 or 1.69% to 491.69 and JSE Index in Indonesia increased 78.58 or 4.78% closed to 1,722.77. The Markets of India were closed today.