Japan Stocks to Open higher; Weak Shippers

123jump.com Staff
15 Oct, 2009
New York City

Tokyo stocks are indicating higher opening as the yen weakened and crude oil gained more than 3% in New York trading. Shipping companies are indicating lower opening. In trading on Thursday electronics exporters and steelmakers advanced.

[R]7:00 AM Tokyo – Tokyo stocks are indicating higher opening as the yen weakened and crude oil gained more than 3% in New York trading. Shipping companies are indicating lower opening.[/R]

Stocks in Japan are likely to open higher in the morning after a rally in New York, 3.2% rise in crude oil prices and a weakness in the yen.

The yen closed at 90.778 against one dollar and crude oil increased to $77.58. Shipping companies are expected to face a headwinds in the trading after Nikkei News reported that the three leading companies are expected to reported higher first half losses.

Investors around the world are focused on earnings as the companies report generally better than expected earnings. Goldman Sachs earnings surged three fold and Citigroup swung to a net profit.

However, Nokia reported a loss and Accor and Carrefour reported weaker than expected sales. Banks and financial services and industrial companies in India report better than expected earnings. WH Smith and SAB Miller reported earnings that met analysts’ expectations in London.

Xstrata dropped its hostile offer for Anglo American Plc ahead of regulatory deadline set by U.K. Financial Services Agency.

In Tokyo trading market averages increased to their highs for the month as the prospect improved for exports to the U.S. and EU. China yesterday reported a smallest decline in monthly exports in the last nine months.

Tokyo Movers

Elpida Memory, Inc increased 2.9% to 1,260 yen after the global supplier of dynamic random access memory reported first-half sales fell 15.5% to ¥96 billion from ¥113.6 billion a year ago. Net loss in the first-half was ¥8.0 billion compared to net loss of ¥31.9 billion a year ago.

Elpida Memory, Inc, in the last one year traded as high as ¥1,554.00 in September 2009 and as low as ¥305.00 in November 2008. Based on the yesterday’s closing price of ¥1,269.00 the company has market cap of ¥249.09 billion.

Steelmakers in Japan closed higher after Korea based Posco estimated higher operating profit in 2009 by 23%. Nippon Steel increased 3.1% to 365 yen and JFE Holdings Inc increased 2.1% to 3,370 yen. Kobe Steel added 3% to 170 yen.

Electronics exporters gained after South Korea based LG Display Co reported a sharply higher third quarter profit. Sony Corp increased 3.6% to 2,600 yen and Panasonic Corp added 3% to 1,267 yen.

Nikkei 200 Average Movers

Japan Airlines Corporation led the decliners in the Nikkei 225 index of 10.9% followed by losses in Sapporo Holdings Limited of 5.2%, in Nomura Holdings, Inc. of 2.7%, in Shinsei Bank, Limited of 2.4% and in Jtekt Corporation of 1.8%.

Trend Micro Incorporated led gainers in the Nikkei 225 index with a rise of 7.6% followed by gains Pioneer Corporation of 5.1%, in The Sumitomo Trust and Banking Company, Limited of 4.6% and in Nitto Boseki Co., Ltd. of 4.2%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 178.44 or 1.77% to 10,238.65, Hang Seng index in Hong Kong increased 112.60 or 0.51% to 21,999.08, and CSI 300 index in China higher 12.24 or 0.38% to 3,239.64. ASX 200 index in Australia increased 28.80 or 0.60% to 4,859.90. The FTSE Bursa KL Composite index in Malaysia was higher 0.02 or 0.00% to 1,246.86.

The Kospi Index in South Korea increased 9.90 or 0.60% to close at 1,658.99 SET Index in Thailand closed lower 38.75 or 5.30% to 692.72. JSE Index in Indonesia increased 3.66 or 0.15% to 2,515.38. The Sensex index in India decreased 35.91 or 0.21% to 17,195.20.