Tokyo Stocks Look Higher; Sony, Daiwa Down

Mayank Mehta
02 Nov, 2009
New York City

Stocks in Tokyo are looking up. Consumer lenders are expected to trade higher on the second day after media reports suggested that the government may not tighten consumer lending rules. Daiwa Securities dropped on weaker than expected earnings.

[R]8:00 AM Tokyo, 6:00 PM New York – Stocks in Tokyo are looking up. Consumer lenders are expected to trade higher on the second day after media reports suggested that the government may not tighten consumer lending rules. Daiwa Securities dropped on weaker than expected earnings.[/R]

Tokyo stocks are expected to open higher after a rise in indexes in New York and Europe. An advance in manufacturing indexes in US and UK lifted the market sentiment.

In Monday’s trading the Nikkei 225 Index in Tokyo closed lower 231.79 or 2.31% to 9,802.95 tracking the losses in New York. Consumer lenders rebounded after the Nikkei News reported that the government may not tighten the lending rules for unsecured consumer loans.

The dollar in New York closed at 90.34 yen.

Tokyo Movers

Acom Company surged 17% to 1,372 yen and Aiful Corp jumped 17% to 156 yen and Takefuji Corp closed up its daily limit of 80 yen or 23% to 427 yen.

Brother Industries Ltd declined 5% to 999 yen after it reported first half net sales fell 22% and income dropped 58% to 4.92 billion yen.

Daiwa Securities dropped 4.5% to 469 yen after it reported second quarter net income of 1.99 billion yen.

Sony Corp and other exporters declined on the global market worries. Sony dropped 5.8% to 2,625 yen and Canon declined 3.1% to 3,420 yen.

Weak trading in crude oil futures also dragged trading companies stocks. Mitsubishi Corp declined 3.1% to 1,915 yen, Mitsui & Company fell 3.1% to 1,185 yen.

Sumitomo Electric Industries Ltd declined 5.7% to 1,061 yen after it reported first half net sales plunged 35% and a net loss of 9.74 billion yen compared to a quarterly net profit.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 231.79 or 2.31% to 9,802.95, Hang Seng index in Hong Kong decreased 132.68 or 0.61% to 21,620.19 and CSI 300 index in China higher 112.43 or 3.43% to 3,392.80. ASX 200 index in Australia decreased 102.80 or 2.21% to 4,540.40. The FTSE Bursa KL Composite index in Malaysia closed lower 1.47 or 0.12% to 1,241.76.

The Kospi Index in South Korea decreased 21.60 or 1.37% to close at 1,559.09. SET index in Thailand closed lower 8.02 or 1.17% to 677.22 and JSE Index in Indonesia increased 3.94 or 0.17% to 2,371.64. The Indian markets were closed today.

Nikkei 200 Average Movers

Mitsui Fudosan Co Ltd led the decliners in the Nikkei 225 index of 6.6% followed by losses in Yokohama Rubber Co Ltd of 6.1%, in Alps Electric Co Ltd of 6.0%, in Tosoh Corp of 6.0% and in Nippon Mining Holdings Inc of 6.0%.

Credit Saison Co Ltd led gainers in the Nikkei 225 index with a rise of 16.5% followed by gains in Marui Group Co Ltd of 10.3%, in Chubu Electric Power Co Inc of 4.2% and in Shinsei Bank Ltd of 2.4%.