Tokyo Stocks Weken; Asahi Glass Surges

123jump.com Staff
12 May, 2009
New York City

Stocks in Japan declined on the worries that global markets may have advanced too far. Weak outlook from Isuzu and Daiichi Sankyo also affected trading. Autos and financials declined. Hitachi reported higher than expected loss for the current year.

[R]7:00PM Tokyo – Stocks in Japan declined on the worries that global markets may have advanced too far. Weak outlook from Isuzu and Daiichi Sankyo also affected trading. Autos and financials declined. Hitachi reported higher than expected loss for the current year.[/R]

Stocks in Japan closed lower after investors worried that recent run up in global markets may have been based on optimism and not in fundamental recovery in the world economy.

In trading today, earnings and annual earnings outlook, rating changes and weakness in financial dominated.

Daiichi Sankyo Co. plunged 9% after it reported annual loss, Isuzu Motors Ltd declined 7.3% after it estimated annual loss for the current year and Asahi Glass Company soared 12% after Nomura raised its rating.

The Nikkei 225 Index in Tokyo closed lower 153.37 or 1.62% to 9,298.61 and yen strengthened against dollar to 97.20 yen.

The strengthening yen and recent price run up in auto stocks led auto stocks lower. Toyota Motor dropped 1.3% to 3,740 yen, Honda Motor Corp declined 1.4% to 2,860 yen and Nissan lost 1% to 510 yen.

Financials declined on weak global recovery outlook. Sumitomo Mitsui Financial Group dropped 7% to 3,880 yen and Mitsubishi UFJ Financial Group dropped 5% to 640 yen and Tokio Marine fell 5.2% to 2,880 yen.

Asahi Glass first quarter sales ending in March declined 3.2% to 236 billion yen and lost 11.98 million yen compared to 22.6 million yen a year ago. The company lowered its annual dividend to 16 yen from 24 yen.

For the fiscal year 2009 the glass maker reported sales to declined 24% to 1.1 trillion yen and net loss of 42 billion yen or 35.97 yen a share.

Earnings Review

Hitachi, Ltd, the electronics maker reported full-year revenues fell 11% to ¥10 trillion from ¥11.2 trillion a year ago. Net loss was ¥787.3 billion or ¥236.87 per diluted share compared to net income of ¥58.1 billion or ¥17.77 per share a year ago.

Nissan Motor Co., Ltd, Japan’s third- largest carmaker reported full-year sales fell 22% to ¥8.44 trillion from ¥10.8 trillion a year ago. Net loss was ¥233.7 billion compared to net income of ¥482.3 billion a year ago.

Japan Airlines Corporation, the country’s biggest carrier reported full-year revenues fell 10% to ¥1.75 trillion from ¥1.95 trillion a year ago. Net income was ¥80.1 billion compared to net loss of ¥63.1 billion a year ago.

Nikkei 200 Average Movers

Sumitomo Heavy Industries, Ltd led the decliners in the Nikkei 225 index of 9.0% followed by losses in Mitsui Chemicals Inc of 7.6%, in Dentsu Inc. of 7.4%, in Sompo Japan Insurance Inc of 7.4% and in Isuzu Motors Ltd of 7.3%.

Asahi Glass Company, Limited led gainers in the Nikkei 225 index with a rise of 11.6% followed by gains in SANYO Electric Co., Ltd. of 6.8%, in OJI Paper Co Ltd, of 4.4% and Maruha Nichiro Holdings Inc. of 4.3%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 153.37 or 1.62% to 9,298.61, Hang Seng index in Hong Kong increased 65.69 or 0.38% closed to 17,153.64, CSI 300 index in China higher 63.25 or 2.32% closed to 2,788.56. ASX 200 index in Australia decreased 48.80 or 1.24% closed to 3,877.20. The KL Composite index in Malaysia lower 2.48 or 0.24% closed to 1,023.02.

The Kospi Index in South Korea decreased 11.65 or 0.82% to close at 1,403.51. SET index in Thailand closed higher 9.36 or 1.75% to 544.54 and JSE Index in Indonesia increased 11.28 or 0.62% closed to 1,842.02. The Sensex index in India increased 475.04 or 4.07% closed to 12,158.03.