Sony, Honda, Mitsubishi Electric Surge

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

Earnings dominated trading in Tokyo. Industrial production increased 2.4% in June and in the quarter surged 8.3%. Sony surged after it reported lower than expected loss. Honda soared after it offered better than expected annual earnings.

[R]8:00 PM Tokyo, 6:00 AM New York – Earnings dominated trading in Tokyo. Industrial production increased 2.4% in June and in the quarter surged 8.3%. Sony surged after it reported lower than expected loss. Honda soared after it offered better than expected annual earnings.[/R]

Industrial production increased 2.4% in June and for the three months ending in the month increased 8.3% from the previous quarter. The data from the Trade Ministry suggested the fastest quarter expansion in 55 years as the decline in exports to China and Europe fall.

The Nikkei 225 Index in Tokyo closed higher 51.97 or 0.51% to 10,165.21

Gainers & Losers

Honda soared 8.7% to 3,010 yen after it revised its annual earnings outlook to 70 billion yen.

Mitsubishi Electric leapt 15% to 710 yen after net sales in the first quarter declined 20% to 699.4 billion yen and net loss of 8.2 billion. The loss was less than half of what market analysts had estimated. The diversified company reported operating income of 8 billion yen but losses in the equity holdings in affiliates dragged the quarter into a loss.

Nippon Oil Corp decreased 2.9% to 502 yen after sales plunged 40% to 1.2 trillion yen and net income dropped to 28.5 billion yen. Average crude oil price in the quarter was 56% lower than a year ago and exchange rate also dragged 5% the sales revenues.

Nissan Motor surged 10% to 694 yen after sales in the quarter dropped 22.8% to 723,000 vehicles and net revenues declined 35.5% and net loss of 16.5 billion yen. The company left its annual loss outlook to 170 billion yen.

NEC Electronics Corp decreased 5.3% to 967 yen after it reported sales in the first quarter declined 22% to 778.5 billion yen and a loss of 33.8 billion yen compared to profit of 0.5 billion yen.

Sumitomo Metal decreased 3.9% to 1,392 yen after it reported first quarter net declined 78% 290.45 billion yen and net loss of 32.36 billion yen.

Sony Corp surged 6.8% to 2,505 yen and after the close reported first quarter revenues declined 19% to 1.6 trillion yen and net loss of 37 billion yen. Earnings per share loss were 37 yen in the quarter. On a constant currency basis revenues declined 11%. The stock gained on lower than estimated loss by most analysts.

Nikkei 200 Average Movers

Nissan Chemical Industries Ltd led the decliners in the Nikkei 225 index of 5.6% followed by losses in Sumitomo Metal Mining Co Ltd of 3.8%, in Sumitomo Metal Industries Ltd of 3.5%, in Daiwa House Industry Co Ltd of 3.3% and in Matsui Securities Co Ltd of 3.1%.

Mitsubishi Electric Corp led gainers in the Nikkei 225 index with a rise of 14.7% followed by gains in Nissan Motor Co Ltd of 9.9%, in Honda Motor Co Ltd 8.6% and Mazda Motor Corp of 8.6%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 51.97 or 0.51% to 10,165.21, Hang Seng index in Hong Kong increased 98.58 or 0.49% to 20,234.08 and CSI 300 index in China higher 76.31 or 2.14% to 3,634.82. ASX 200 index in Australia increased 47.60 or 1.15% to 4,190.40. The FTSE Bursa KL Composite index in Malaysia closed lower 3.82 or 0.33% to 1,160.66.

The Kospi Index in South Korea increased 10.42 or 0.68% to close at 1,534.74. SET index in Thailand closed higher 7.07 or 1.15% to 621.95 and JSE Index in Indonesia increased 72.32 or 3.25% to 2,298.14. The Sensex index in India increased 214.50 or 1.41% to 15,387.96.