Japan Economic Indicators Positive; Stocks Down

Darlington Musarurwa
09 Mar, 2010
New York City

The economic measure indicting economic activities increased in January as exports strengthen and unemployment declines to 10-month low. Sony Corp is targeting to sell 25 million LCD TVs and 2 million 3D models in the next fiscal year beginning April 1. The yen gains against the euro and the dollar.

[R]5:00 AM New York, 7:00 PM Tokyo – The economic measure indicting economic activities increased in January as exports strengthen and unemployment declines to 10-month low. Sony Corp is targeting to sell 25 million LCD TVs and 2 million 3D models in the next fiscal year beginning April 1. The yen gains against the euro and the dollar.[/R]

Japanese stocks fell as investors booked gains after a two-day rally.

In Tokyo trading Nikkei 225 Stock Average decreased 0.2% or 18.27 to 10,567.65, and the broader Topix Index dropped 0.3% to 924.38. The Nikkei index has surged 50% in the last one year from the lows since October 1982.

In the first section of the Tokyo Stock Exchange 7.4 billion shares worth 511 billion yen were traded and in the second section 122 million shares valued at 1.6 billion yen changed hands.

Of the Nikkei 225 index stocks, 70 rose, 137 declined, and 18 were unchanged. Clarion Co. Ltd led gainers in the index shares with a rise of 5.8% followed by Pioneer Corp advancing 4.5%.

The yen traded at 89.85 to a dollar and at 121.85 against a euro.

Broad Economic Indicator Rises in Jan

Japan’s Cabinet Office reported today that the country’s composite index of coincident economic indicators rose 2.5 points to 99.9 in January from a month ago. The index increased for the tenth month in a row on a steady rise in exports for the second month in a row.

The index of leading indicators, which measures sentiment for the months ahead, climbed 2.4 points to 97.1.

The confidence in the business community and employers increased after unemployment declined to a 10-month low and monthly wages increased for the first time in January since in April 2008.

Sony Targets 25 million LCD TV Sales

Sony Corp. is estimating to sell more than 25 million liquid crystal display televisions in the next fiscal year, an increase of 67% from the current fiscal year. As much as 10% of sales are expected to be 3D according to President of home-entertainment division Yoshihisa Ishida at a news conference today.

The company said 3-D televisions will go on sale in Japan on June 10, at the same time the sales begin in Europe and U.S.

Worldwide shipments of LCD TVs are expected to increase to 171 million units in 2010 according to researcher DisplaySearch based in Austin, Texas.

Samsung Electronics Co., the world market leader expects to sell 35 million sets and the second ranked LG Electronics Inc is targeting 25 million units. Samsung also estimated 3D TV sales of 2 million in 2010.

Nikkei Movers

Fujitsu Ltd led the decliners in the Nikkei 225 Stock Average with a loss of 3.8% followed by losses in IHI Corporation of 3.0%, in JTEKT Corporation of 3.0%, in Teijin Ltd 2.1% and in The Chiba Bank, Ltd 2.0%.

Clarion Co Ltd led gainers in the Nikkei 225 Stock Average with a rise of 5.7% followed by gains in Pioneer Corp 4.5%, in Sumco Corp of 3.9% and in Nitto Boseki Co Ltd 3.3%.

Other Movers

Aeon Credit Service Co added 2.6% to 977.00 yen after the credit-card company had its rating upgraded to “buy” from “neutral” by UBS AG.

Anest Iwata Corp the maker of compressors and painting machines rose 3.5% to 325.00 yen.

Disco Corp the maker of abrasives and precision industrial machinery increased 4.6% to 5,370.00 yen.

Fujitsu dropped 3.9% to 546 yen after the company revised its earlier statement and said that President Kuniaki Nozoe was asked to resign for his connection with a firm with a questionable reputation and not for health reasons.

JTEKT Corporation decreased 3.0% to 935.00 yen after the auto-parts maker was downgraded to “neutral” from “outperform” at Credit Suisse Group.

K’s Holdings Corp gained 5.0% to 2,694.00 yen after the electronics retailer announced that it has split its one common stock to 1.2 common stocks, effective April 1. The total outstanding shares will be 61,026,739, up from 50,855,616.

NTT Data Corporation advanced 2.1% to 285,000 yen.

Sony Corp gained 1.1% to 3,330 yen.

Tsugami Corp advanced 3.7% to 465.00 yen after the machine tool maker was upgraded to “positive” from “neutral plus” at Toward the Infinite World Inc.