Machinery Orders in Japan Rise; Shippers Gain

Darlington Musarurwa
10 Feb, 2010
New York City

Japan

[R]5:00 AM New York, 7:00 PM Tokyo - Japan’s machinery orders surged 21.1% to 1.98 trillion yen in December. Honda said it will recall 378,758 models of Accord and Civic in the U.S. to fix a air bag trigger. MacDonald Japan profits climb 3.4% to 12.8 billion yen in 2009.[/R]

The benchmark stock index rose marginally in Japan as worries over the sovereign risks in Europe eased on the news that the European Union and Germany are working on an aid plan for Greece. Shipping companies led the gainers in trading today.

The EU rules prevent the regional organization from providing loans to member nations or corporations. The bilateral aid is expected to help Greece and prevent a wider contagion involving Spain and Portugal.

In Tokyo trading Nikkei 225 Stock Average rose 0.3% or 31.90 to 9,963.99, and the broader Topix Index climbed 0.2% or 883.50.

In the first section of the Tokyo Stock Exchange 9.4 billion shares valued at 605 million yen were traded and in the second section 113 million shares worth 1.5 billion yen changed hands.

Of the Nikkei 225 index stocks, 106 rose, 102 fell, and 17 were unchanged. Nisshinbo Holdings led gainers in the index shares with a rise of 9.9% followed by Yokogawa Electric increasing 9.3%.

One euro fetched 124.27 yen and one dollar traded at 90.02 yen.

Japan’s Machinery Orders Rise 21.1% in Dec

Japan’s cabinet office reported today that the total value of machinery orders received by 280 manufacturers operating in Japan advanced 21.2% to 1.98 trillion yen in December from a month ago.

Total machinery orders also increased 7.8% to 5.4 trillion yen in the October to December period and are projected to drop 1.9% to 5.3 trillion yen in the three months to March.

Private sector machinery orders, excluding volatile ones, increased 20.1% to 751 billion yen in December from a month earlier and jumped 0.5% to 2.08 trillion yen in the December quarter. Orders are estimated to increase 2% to 2.1 trillion yen in the March quarter.

Manufacturing orders climbed 17.1% to 281 billion yen in December from a month ago, while orders soared 17.8% to 815 billion yen in the October-December period. The cabinet office expected manufacturing orders to grow 2.3% to 834 billion yen in the three months ending March.

According to the report, non-manufacturing orders jumped 22.9% to 467 billion yen in December from a month earlier, while orders fell 8.4% to 1.27 trillion yen in the three months to December.
However, orders are expected to gain 3.5% to 1.3 trillion yen.

Government orders dropped 5.5% to 220 billion yen in December from the previous month but rose 21.8% to 659 billion yen in the December quarter. Orders are expected to edged up 2% to 676 billion yen in the March quarter.

In addition, overseas orders increased 20.9% to 754 billion in December from the previous month.

Honda Recalls vehicles in the U.S.

Japan Today reported that Honda’s U.S. unit will recall 378,758 vehicles in the United States, including Accords and Civics, to replace the driver’s airbag inflator, citing that the current inflators might deploy too much pressure.

The company noted that it is aware of twelve incidents related to the issue as of February 2010.

The car maker said it cannot be completely certain that the “driver’s inflator in the vehicles being added to this recall at this time will perform as designed.”

MacDonald Japan Profit Climbs 3.4%

MacDonald Japan reported today that its group net profit rose 3.4% to 12.8 billion yen, the largest increase since its listing in 2001.

Sales at all MacDonald restaurants in Japan, including franchise stores, gained 2.6% to 531.9 billion from the comparable year ago period.

However, consolidated sales declined 10.8% to 362.3 billion yen.

Annual profit is expected to fall 54.7% to 5.8 billion yen from 2009 on 12 billion yen shutdown costs, while consolidated sales are expected to decline 13.6% to 313 billion yen.

Nikkei Movers

Comsys Holdings Corporation led the decliners in the Nikkei 225 Stock Average with a loss of 8.4% followed by losses in Taiyo Yuden Co., Ltd of 6.2%, in Nitto Boseki Co Ltd of 4.2%, in Clarion Co Ltd 3.5% and in Pioneer Corp 3.1%.

Nisshinbo Holdings Inc led gainers in the Nikkei 225 Stock Average with a rise of 9.8% followed by gains in Yokogawa Electric Corporation 9.3%, in Obayashi Corp of 6.5% and in Ebara Corp of 6.3%.

Other Movers

Japan Tobacco Inc gained 5.6% to ¥328,000 after the company said its net profit for the fiscal third quarter declined 34% from a year ago and the company blamed stronger yen and a weakness in domestic demand on higher taxes.

Komatsu Ltd the maker of earthmoving equipment rose 3.1% to ¥1,784.

Nippon Yusen Kabushiki Kaisha, the shipping line added 2.7% to ¥335 and Mitsui OSK Lines Ltd increased 2.8% to ¥556 after concerns for the decline in trade with Europe receded.

Nikon Corporation the camera maker advanced 5.6% to ¥1,863.

Sony Corporation the maker of the PlayStation 3 game machine rose 1.1% to ¥3,020.