All Nippon, Mizuho, Orix to Raise

Mukesh Buch
01 Jul, 2009
New York City

Japanese stocks closed lower ahead of earnings. Orix, All Nippon and Mizuho Financial plan to raise total of $9 billion. Nikkei index surged 22.8% in first fiscal quarter on a surge in global markets. Construction equipment makers gained after Chinese index of manufacturing increased.

[R]8:00 PM Tokyo, 6:00 AM New York – Japanese stocks closed lower ahead of earnings. Orix, All Nippon and Mizuho plan to raise total of $9 billion. Nikkei index surged 22.8% in first fiscal quarter on a surge in global markets.[/R]

Stocks in Japan closed lower in a weak trading as investors await fiscal first quarter earnings. Expectations of earnings are low but energy, trading and commodities linked companies are estimated to deliver better results.

The Nikkei 225 Index in Tokyo closed lower 18.51 or 0.19% to 9,939.93. The benchmark index in the quarter surged 22.8%.

More financial companies are planning to raise capital as markets have recovered in the last fifteen weeks.

Gainers & Losers

Mizuho Financial increased 2.2% to 231 yen after the company plans to raise up to 655 billion yen.

Orix dropped 4.8% to 5,530 yen after the Nikkei News reported that the company is preparing to raise 100 billion yen.

After the market close, All Nippon Air also said it plans to raise 183 billion yen.

Machinery and construction equipment makers increased after Purchasing Managers’ index increased in May. The expansion suggested that the manufacturing activities are still expanding.

Komatsu Ltd increased 1.8% to 1,519 yen and Kubota Corp increased 2.9% to 820 yen.

Nikkei 200 Average Movers

All Nippon Airways Co Ltd led the decliners in the Nikkei 225 index of 5.9% followed by losses in Japan Tobacco Inc of 4.1%, in Fukuoka Financial Group Inc. of 3.2%, in Credit Saison Co. Ltd. of 3.1% and in Casio Computer Co Ltd of 3.1%.

Furukawa Electric Co Ltd led gainers in the Nikkei 225 index with a rise of 8.0% followed by gains in Isetan Mitsukoshi Holdings Ltd of 4.2%, in Nippon Kayaku Co Ltd of 3.3% and CSK Holdings Corporation of 3.0%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 18.51 or 0.19% to 9,939.93, CSI 300 index in China higher 71.43 or 2.26% to 3,237.90.ASX 200 index in Australia decreased 80.90 or 2.05% to 3,874.00.The KL Composite index in Malaysia closed higher 4.16 or 0.39% to 1,079.40. The Hong Kong markets were closed today.

The Kospi Index in South Korea increased 21.59 or 1.55% to close at 1,411.66.JSE Index in Indonesia increased 33.10 or 1.63% to 2,059.88. The Sensex index in India increased 151.63 or 1.05% to 14,645.47. The Thailand markets were closed today.