Tokyo 9-Day Gain; NYK, Mitsui, Kawasaki Drop

123jump.com Staff
27 Jul, 2009
New York City

Stocks in Japan closed higher for the ninth day in a row, the longest stretch of advance in 21 years. Three leading shipping companies lowered earnings outlook for the year on weak container loading and auto shipments. Hitachi affiliates surged on the acquisition plan by the parent.

[R]8:00 PM Tokyo, 6:00 AM New York – Stocks in Japan closed higher for the ninth day in a row, the longest stretch of advance in 21 years. Three leading shipping companies lowered earnings outlook for the year on weak container loading and auto shipments. Hitachi affiliates surged on the acquisition plan by the parent.[/R]

The benchmark index in Tokyo closed higher for the ninth day in a row ahead of bank earnings this weeks and optimism that global economies are stabilizing. The Nikkei Average gained for the longest period in 21 years.

The Nikkei 225 Index in Tokyo closed higher 144.11 or 1.45% to 10,088.66.

Shippers closed lower after three leading companies lowered earnings outlook. Weak container loading to Europe and U.S, declining auto shipments to U.S. and sharply lower shipments to Asian ports contributed to the lowered outlook.

Gainers & Losers

Mitsui O.S.K. Lines Ltd declined 3.5% to 599 yen after it lowered its first half revenues outlook to 640 billion yen and net loss of 7 billion yen. The shipping company previously had estimated revenues of 670 billion yen and a net profit of 10 billion yen.

The company in its latest outlook for the fiscal year ending in March 2010, estimated net income of 30 billion yen or 25.07 yen a share.

Nippon Yusen decreased 4.6% to 399 yen reported fiscal first quarter revenues of 380 billion compared to 679 billion yen and net loss of 25 billion yen compared to net income of 58 billion yen a year ago quarter.

For the first half the company estimated net revenues of 784 billion yen and net loss of 32 billion yen and for the full year net revenues of 1.7 trillion yen and net loss of 5 billion yen.

Kawasaki Kisen Kaisha Ltd fell 4% to 362 yen after it reported fiscal first quarter revenues plunged to 191 billion yen compared to 349 billion yen and net loss of 14.8 billion yen compared to net income of 21.5 billion yen.

The company reported total containers loaded for North America declined 12%, for Europe dropped 9% and for Asia plunged 20%.

Nippon Residential Investment Corp dropped 8.4% to 233,500 yen and Advance Residence Investment Corp surged 12% to 369,000 yen. Itochu, the parent of Advance is expected to make an offer for Nippon and merge it with its affiliate that will create the largest REIT in Japan. The news was first reported by Nikkei and Bloomberg news.

Hitachi increased 3.4% to 304 yen after media reports suggested that the company will acquire five of its affiliates. The news was first reported by Nikkei news.

Hitachi affiliates surged on the news. Clarion Company surged 14% to 100 yen, Hitachi Maxell Ltd, and four other subsidiaries soared in the session.

Earnings Review

Hitachi Construction Machinery Co., Ltd, the manufacturer of leading edge construction machinery said first quarter sales fell 43.4% to ¥132.3 billion from ¥233.9 billion a year ago. Net loss in the quarter was ¥8.6 billion or ¥41.64 per diluted share compared to net profit ¥12.5 billion or ¥58.44 per share a year ago.

Nikkei 200 Average Movers

Nippon Yusen KK led the decliners in the Nikkei 225 index of 4.5% followed by losses in Meidensha Corp of 4.1%, in Kawasaki Kisen Kaisha Ltd of 3.9%, in Mitsui OSK Lines Ltd of 3.5% and in Fujikura Ltd of 3.0%.

Clarion Co Ltd led gainers in the Nikkei 225 index with a rise of 13.6% followed by gains in Pioneer Corp of 7.2%, in CSK Holdings Corporation of 6.8% and Shinsei Bank Ltd of 6.5%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 144.11 or 1.45% to 10,088.66, Hang Seng index in Hong Kong increased 268.83 or 1.35% to 20,251.62 and CSI 300 index in China higher 76.07 or 2.07% to 3,743.63. ASX 200 index in Australia increased 49.80 or 1.22% to 4,139.60. The FTSE Bursa KL Composite index in Malaysia closed higher 0.55 or 0.05% to 1,156.43.

The Kospi Index in South Korea increased 21.46 or 1.43% to close at 1,524.05. SET index in Thailand closed higher 3.59 or 0.58% to 617.83 and JSE Index in Indonesia increased 23.45 or 1.07% to 2,209.10. The Sensex index in India decreased 3.92 or 0.03% to 15,375.04.