Machinery Orders Lift Tokyo Stocks; Acom Surges

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

Stocks in Tokyo edged up and for the week closed higher. Latest machinery orders indicated a sharp surge in overseas orders but the government forecasted weak sales in the current quarter. Sanyo Electric, Sony and Acom gained after the earnings release.

[R]7:00PM Tokyo – Stocks in Tokyo edged up and for the week closed higher. Latest machinery orders indicated a sharp surge in overseas orders but the government forecasted weak sales in the current quarter. Sanyo Electric, Sony and Acom gained after the earnings release.[/R]

Stocks in Tokyo gained after the release of machinery orders data for March and earnings from Sony and Sanyo and Acom. Banks rallied on speculation that interbank lending is likely to ease.

Total orders in March increased but private orders excluding the volatile shipping and electric utility related, declined 1.3%, lower than expected. The overseas orders, not counted in the overall order surged 46.4%.

The Nikkei 225 Index in Tokyo closed higher 171.29 or 1.88% to 9,265.02 and for week the index declined 1.8%.

Machinery Orders Lift Hopes

The machinery orders in March increased 13.2% in March from the previous month on a seasonally adjusted basis. In January-March period it fell by 16.1% compared with the previous quarter.

Private-sector machinery orders, excluding volatile ones for ships and those from electric power companies, decreased a seasonally adjusted by 1.3% in March, and fell by 9.9% in the quarter ending in March.

The survey of 280 manufacturers also indicated that orders between April and June are expected to fall 9% and excluding volatile orders for the private sector are expected to fall 5%.

Overseas orders surged 46.4% in March stoking speculation that companies around the world are willing to invest despite the ongoing weakness in financial markets and global economy.

Gainers & Losers

Acom Company surged 8.2% to 2,635 yen after it reported 14.6% decline in operating income to 324 billion yen and net income plunged 61% to 13.6 billion yen for the fiscal year ending in March 2009.

For the fiscal year ending in March 2010, the consumer lender forecasted earnings to surge to 30 billion yen, 78% rise from 2009 earnings.

Komatsu gained 3.1% after the overseas orders in March data suggested a sharp gain.

Sony Corp surged 7.1% after it reported annual loss and forecasted weak results in the current year. However, the electronics gadget maker and entertainment company also plans to consolidate its manufacturing and close at least five more plants. Sony has been battling with Apple for music devices and 3G phone and game player makers.

Sanyo Electric Group surged 6.4% to 199 yen after it reported annual sales declined 11% to 1.77 trillion yen in the year ending in March 2009 and net loss of 93 billion yen compared to profit of 28 billion yen. Tokyo Electron Ltd added 7.8% to 4,400 yen.

Financials gained after the Libor rate in London declined. The decline was interpreted by analysts as a greater willingness by banks to lend to one another.

Sumitomo Mitsui Financial Group increased 4.3% to 3,920 yen and Mizuho Financial Group increased 2.2% to 237 yen. Tokio Marine added 5.4% to 2,960 yen.

Earnings Review

Aozora Bank, Ltd, the Japan-based regional bank reported full-year revenues fell 9.2% to ¥182.57 billion from ¥201.02 billion a year ago. Net loss in the quarter was ¥242.55 billion or ¥150.92 per diluted share compared to net profit of ¥5.93 billion or ¥2.26 per share a year ago.

Mizuho Financial Group, Inc, Japan’s second-largest bank reported full-year revenues fell 22.3% to ¥3.514 trillion from ¥4.524 trillion a year ago. Net loss in the quarter was ¥588.8 billion or ¥54.14 per diluted share compared to net profit of ¥311.2 billion or ¥24,640.00 per share a year ago.

Panasonic Corporation, Japanese electronics maker reported full-year revenues fell 14.4% to ¥7.77 trillion from ¥9.07 trillion a year ago. Net loss in the quarter was ¥379 billion or ¥182.25 per ADS compared to net profit of ¥281.9 billion or ¥132.90 per ADS a year ago.

Sumitomo Mitsui Financial Group, Inc, a financial company reported full-year revenues fell 23.2% to ¥3.55 trillion from ¥4.62 trillion a year ago. Net loss in the quarter was ¥373.46 billion or ¥497.39 per diluted share compared to net profit of ¥461.54 billion or ¥56,657.41 per share a year ago.

Nikkei 200 Average Movers

Ajinomoto Co., Inc led the decliners in the Nikkei 225 index of 5.5% followed by losses in COMSYS Holdings Corporation of 3.9%, in Hitachi Zosen Corporation of 3.5%, in Oji Paper Co Ltd. of 2.8%.

Kajima Corporation led gainers in the Nikkei 225 index with a rise of 13.4% followed by gains in Meidensha Corporation of 12.0%, in Sumitomo Electric Industries, Ltd of 11.0% and Clarion Ltd of 9.3%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 171.29 or 1.88% to 9,265.02, Hang Seng index in Hong Kong increased 249.01 or 1.51% closed to 16,790.70, CSI 300 index in China higher 3.52 or 0.13% closed to 2,796.12. ASX 200 index in Australia increased 49.80 or 1.34% closed to 3,773.20. The KL Composite index in Malaysia higher 2.22 or 0.22% closed to 1,014.21.

The Kospi Index in South Korea increased 10.78 or 0.78% to close at 1,391.73. SET index in Thailand closed higher 7.37 or 1.40% to 533.92 and JSE Index in Indonesia decreased 34.09 or 1.91% closed to 1,750.91. The Sensex index in India increased 300.51 or 2.53% closed to 12,173.42.