Banks in Japan Gain; Video Console Sales Rise

Darlington Musarurwa
15 Jan, 2010
New York City

Stocks in Japan edged higher led by strength in banks. Japan is expected to restructure JAL through a bankruptcy court on Jan 19. Japan wholesale prices fall 5.3% in 2009. Shiseido agreed to acquire Bare Escentuals for $1.7 billion. Sony and Nintendo December US game console surge.

[R]5:00 AM New York, 7:00 PM Tokyo – Stocks in Japan edged higher led by strength in banks. Japan is expected to restructure JAL through a bankruptcy court on Jan 19. Japan wholesale prices fall 5.3% in 2009. Shiseido agreed to acquire Bare Escentuals for $1.7 billion. Sony and Nintendo December US game console surge.[/R]

Japanese stock indexes gains were led by a recovery in financial stocks on the expectations that banks will be able to raise more capital.

Video game console and software developers’ U.S. sales increased 4% to $5.53 billion in December from a year ago according to independent researcher NPD Group Inc.

Sales of PlayStation 3 made by Sony increased 87% to 1.36 million units and Wii made by Nintendo gained 77% to 3.81 million consoles. Game console makers lowered prices in September to spur sales. Xbox 360 made by Microsoft sales declined 9% to 1.31 million units.

In Tokyo trading Nikkei 225 Stock Average edged up 0.7% or 74.42 to 10,982.10, and the broader Topix Index increased 7.39 to 966.40.

In the first section of the Tokyo Stock Exchange 30 billion shares valued at 1.8 trillion yen were traded and in the second section 290 million shares worth 3.6 billion yen changed hands.

Of the Nikkei 225 index stocks, 118 jumped, 85 dropped, and 22 were unchanged. Resona Holdings led advancers in the index shares with a rise of 9% followed by Mitsubishi Motors climbing 7.5%.

Hatoyama to Announce Date for Rehabilitation Plan

Nikkei News reported transport minister Seiji Maehara said he will meet Prime Minister Yukio Hatoyama today to finalize the “X-day” for Japan Airlines Corp., or the date when the state-backed body is expected to announce a court-led rehabilitation plan.

According to the report, the Enterprise Turnaround Initiative Corp. of Japan might announce a financial package on Tuesday, when the carrier is also expected to file for bankruptcy protection under the Corporate Rehabilitation Law.

Maehara noted that JAL is expected to get the remaining 145 billion yen from the 200 billion yen credit line from the Development Bank of Japan today.

Japan Wholesale Prices Fall 5.3% in 2009

Bank of Japan reported yesterday the corporate goods price index, which measures the country’s wholesale prices, dropped 5.3% in 2009 from a year earlier.

The prices index was at 103 against the 2005 base of 100.

Shiseido to Buy Bare Escentuals $1.7 billion

Shiseido Co. announced today it intends to purchase all outstanding stock of Nasdaq-listed Bare Escentuals Inc. for 160 billion yen or $1.7 billion. Shiseido will pay $18.20 for each share.

On the overall, the company says it will increase its overseas sales to 50% of total by 2017.

Nikkei Movers

Japan Airlines Corporation led the decliners in the Nikkei 225 Stock Average with a loss of 11.1% followed by losses in JFE Holdings, Inc of 3.3%, in COMSYS Holdings Corporation of 2.5%, in Sharp Corporation 2.4% and in Daikin Industries Ltd 2.4%.

Resona Holdings, Inc led gainers in the Nikkei 225 Stock Average with a rise of 8.9% followed by gains in Mitsubishi Motors Corp 7.4%, in Mizuho Trust & Banking Co. Ltd of 7.4% and in Clarion Co Ltd of 6.1%.

Other Movers

Japan Airlines Corporation plunged 12.5% to ¥7.00.

Mitsubishi Motors Corp. increased 7.4% to ¥144.00 after the carmaker closed 2009 with sales of 23,247 units, 32.5% growth compared to 17,539 units a year ago.

Nippon Steel Corp. the steelmakers dropped 1.5% to ¥376.00.

Nippon Yusen Kabushiki Kaisha the shipping line decreased 0.2% to ¥351.00.

Shiseido Company, Limited added 5.0% to ¥2,040.00 after it agreed to acquire Bare Escentuals, Inc. and plans to increase its international sales as the domestic market remain flat.

Tokyo Electron Limited the maker of semiconductor-manufacturing equipment advanced 2.2% to ¥6,040.00.