Leading Indicators Up in Japan; Nikon Plunges

123jump.com Staff
06 Aug, 2009
New York City

The index of leading indicators in Japan surged in June on rising consumer confidence and investor sentiment. Nikon plunged 10% after it offered weak outlook. Rising metals prices lifted resource stocks. Kirin revises its annual revenues and earnings outlook.

[R]8:00 PM Tokyo, 7:00 AM New York – The index of leading indicators in Japan surged in June on rising consumer confidence and investor sentiment. Nikon plunged 10% after it offered weak outlook. Rising metals prices lifted resource stocks.[/R]

Stocks in Japan resumed their climb after trading sideways in the last three days. Metals and automakers led the gainers in trading.

The Nikkei 225 Index in Tokyo closed higher 135.56 or 1.32% to 10,388.09 and yen edged higher against pound and euro.

The leading index of 12 economic indicators increased to 79.8 in June from 76.9 in May according to the latest data released by the Cabinet Office. The sharpest increase in the index in nearly three decades may suggest economic expansion in the second quarter.

Gainers & Losers

Kirin Holdings Limited first half sales edged slightly higher to 1.06 trillion yen but net income plunged to 14.96 billion yen from 81.12 billion yen.

For the fiscal year ending in December, the brewer revised higher revenue outlook of 2.3 trillion yen and net income of 60 billion yen.

Nikon dropped 10% to 1,690 yen after it reported weak results two days ago. Fiscal first quarter revenues declined 26.4% to 175.14 billion yen and quarterly loss of 4 billion yen. The camera maker estimated 30.2% decline in revenues to 340 billion and 19.3% decrease to 710 billion yen.

Olympus Corp increased 2% to 2,655 yen after it revised first-half earnings of 36 billion yen compared to 33 billion yen estimate. Net income declined 72% to 1.8 billion yen in the first fiscal quarter.

Pacific Metals surged 6.4% to 821 yen after it revised its annual earnings outlook higher citing rising international metal prices.

Sumitomo Metal Mining increased 3.4% to 1,496 yen after operating revenues in the three months to June declined 8.4% to 149.4 billion yen and net income surged 40% to 17 billion yen.

Auto makers increased ahead of the U.S. lawmaker’s vote to extend Cash for Clunkers program. Toyota Corolla, Prius and Camry are three of the five most popular models under the program.

Honda Motor Company increased 3.7% to 3,110 yen and Toyota Motor added 3.8% to 4,130 yen.

Nikkei 200 Average Movers

Nikon Corp led the decliners in the Nikkei 225 index of 10.0% followed by losses in Konami Corp of 8.1%, in Marui Group Co Ltd of 3.8%, in Fukuoka Financial Group Inc of 3.2% and in Isetan Mitsukoshi Holdings Ltd of 2.6%.

Nippon Sheet Glass Co Ltd led gainers in the Nikkei 225 index with a rise of 10.7% followed by gains in Alps Electric Co Ltd of 10.6%, in Hino Motors Ltd 8.3% and Nippon Light Metal Co Ltd of 7.2%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 135.56 or 1.32% to 10,388.09, Hang Seng index in Hong Kong increased 404.47 or 1.97% to 20,899.24 and CSI 300 index in China lower 77.82 or 2.08% to 3,663.12. ASX 200 index in Australia increased 61.80 or 1.45% to 4,326.30. The FTSE Bursa KL Composite index in Malaysia closed higher 4.48 or 0.38% to 1,183.97.

The Kospi Index in South Korea increased 5.57 or 0.36% to close at 1,565.04. SET index in Thailand closed higher 9.05 or 1.41% to 649.21 and JSE Index in Indonesia increased 42.91 or 1.85% to 2,359.98. The Sensex index in India decreased 389.80 or 2.45% to 15,514.03.