Tokyo Stocks Rebound; Hisamitsu in Noven Deal

Darlington Musarurwa
14 Jul, 2009
New York City

Stocks in Japan rebounded after a sell-off that has lasted two weeks. Banks, securities and commodities companies closed higher. Hisamitsu Pharmaceuticals agreed to acquire Miami, Florida based Noven Pharmaceuticals for $430 million. Nissan surged after it increased production in China.

[R]11:30 PM Tokyo, 9:30 AM New York - Stocks in Japan rebounded after a sell-off that has lasted two weeks. Banks, securities and commodities companies closed higher. Hisamitsu Pharmaceuticals agreed to acquire Miami, Florida based Noven Pharmaceuticals for $430 million.[/R]

Japanese stocks closed up after dropping for nearly two weeks in a row. The rebound in stocks was based on the optimism that U.S. banks will report better than expected earnings, an indication of economic stability.

The Nikkei 225 Index in Tokyo closed higher 211.48 or 2.34% to 9,261.81 and yen declined to 93.35 from 92.24 against one dollar.

Gainers & Losers

Asahi Glass Co increased 5.8% to 726 yen after automakers rebounded. Nissan surged 7.3% to 545 yen after it decided to increase automobile production at one of its facilities in China to take advantage of strong domestic market.

Nissan plans to increase its annual production in China to 460,000 from 360,000 according to the news reported by Nikkei.

Komatsu Ltd increased 6.5% to 1,380 yen after Nikkei newspaper estimated that the company is expected to report first quarter operating profit of 5 billion yen.

Mizuho Financial Group increased 2.6% to 198 yen and Mizuho Securities jumped 7.9% to 261 yen. Sumitomo Mitsui Financial Group added 5.4%. Nomura Holdings surged 6.9% to 714 yen.

Hisamitsu Pharmaceutical Company decreased 1.54% to 3,180 yen after it agreed to acquire Miami, Florida based Noven Pharmaceuticals ((NOVN)) for $16.50 a share or $428 million. Hisamitsu will pay 15 billion or $160 million in borrowed funds and 23 billion in cash from company resources.

Noven in the Nasdaq trading opened up 22% and traded at $16.45. Hisamitsu owns 5% of the stake in the company.

Noven is known for its transdermal patches for the delivery of drugs for the treatment of Attention Deficit Hyperactivity Disorder and in menopausal hormone therapy.

Nikkei 200 Average Movers

Shionogi & Co., Ltd led the decliners in the Nikkei 225 index of 3.4% followed by losses in Osaka Gas Co Ltd of 3.1%, in East Japan Railway Co of 2.9%, in Secom Co Ltd of 2.0% and in Shizuoka Bank Ltd of 1.8%.

Meidensha Corp led gainers in the Nikkei 225 index with a rise of 10.2% followed by gains in Oki Electric Industry Co Ltd of 9.6%, in Isuzu Motors Ltd of 9.6% and Pioneer Corp of 9.3%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 211.48 or 2.34% to 9,261.81, Hang Seng index in Hong Kong increased 631.10 or 3.66% to 17,885.73 and CSI 300 index in China higher 93.74 or 2.79% to 3,454.75. The ASX 200 index in Australia increased 129.60 or 3.47% to 3,867.10. The FTSE Bursa KL Composite index in Malaysia closed higher 15.97 or 1.50% to 1,079.63.

The Kospi Index in South Korea increased 7.44 or 0.54% to close at 1,385.56. SET index in Thailand closed higher 15.20 or 2.70% to 577.75 and JSE Index in Indonesia increased 36.44 or 1.80% to 2,056.58. The Sensex index in India increased 453.38 or 3.38% to 13,853.70.