Toshiba Raises $3 Billion; Tokyo Stocks Up

Darlington Musarurwa
27 May, 2009
New York City

Stocks in Japan closed higher, lifted by global markets. April exports plunged 36% and trade surplus in the month declined 85%. Exports to China, U.S. and Europe dropped sharply. Nikon plans to eliminate 1,000 jobs. Toshiba completed $3 billion rights offering.

[R]6:00 PM Tokyo, 8:00 AM New York – Stocks in Japan closed higher, lifted by global markets. April exports plunged 36% and trade surplus in the month declined 85%. Exports to China, U.S. and Europe dropped sharply. Nikon plans to eliminate 1,000 jobs. Toshiba completed $3 billion rights offering.[/R]

Investors in Japan focused on local companies and economic indicators in the U.S., the largest market for their exports.

Japan exports in April plunged 39.1% from a year ago to 4.1 trillion yen and imports fell 35.8% to 4.13 trillion yen. Trade surplus declined 85% to 69 billion yen.

Exports to China declined 25% to 814 billion yen and to the U.S. fell 46% to 653 billion yen. Trade surplus with the U.S. declined 65% to 200 billion yen. Exports to the EU nations declined 45% to 555 billion yen and trade surplus plunged 66% to 136 billion yen.

The Nikkei 225 Index in Tokyo closed higher 127.96 or 1.37% to 9,438.77.

Gainers & Losers

Nikon Corp increased 3.5% to 1,396 yen after the company said it will eliminate 1,000 positions in sales and support.

A rise in Baltic Dry Index, a measure of freight rate, lifted stocks of shipping carriers. Mitsui OSK gained 0.4%, Kawasaki Kisen Kaisha Ltd increased 1.8% to 401 yen and Nippon Yusen Kaisha increased 0.9% to 430 yen.

Ratings revisions also lifted Nidec Copal Corp and Nomura Real Estate Holdings Inc. Nidec jumped 11% to 792 yen after Credit Suisse cited improved operating outlook and lifted its rating. Nomura Real Estate leapt 5% to 1,757 yen after the broker made positive comments on the company.

Toshiba Corp increased 1.8% to 344 yen after it completed its rights offering. The company priced 870 million shares at 333 yen each and raised 290 billion yen.

Nikkei 200 Average Movers

Nippon Mining Holdings Inc led the decliners in the Nikkei 225 index of 4.0% followed by losses in CSK Holdings Corporation of 3.9%, in Mitsui Mining & Smelting Co Ltd of 3.8%, in Meidensha Corp of 3.8% and in Mitsui Chemicals Inc of 2.9%.

Sanyo Electric Co Ltd. led gainers in the Nikkei 225 index with a rise of 7.0% followed by gains in Tokyu Corp. of 5.2%, in Fukuoka Financial Group Inc of 5.1% and Nomura Holdings Inc. of 4.6%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 127.96 or 1.37% to 9,438.77, Hang Seng index in Hong Kong increased 893.71 or 5.26% closed to 17,885.27, CSI 300 index in China higher 39.95 or 1.47% closed to 2,759.71. ASX 200 index in Australia increased 12.70 or 0.34 % closed to 3,801.10. The KL Composite index in Malaysia lower 3.95 or 0.38% closed to 1,047.68.

The Kospi Index in South Korea decreased 10.02 or 0.73% to close at 1,362.02. SET index in Thailand closed higher 12.72 or 2.34% to 555.41 and JSE Index in Indonesia increased 35.26 or 1.90% closed to 1,892.84. The Sensex index in India increased 520.41 or 3.83% closed to 14,109.64.