Retail Sales in Japan Soar; Toyota Output Up

Darlington Musarurwa
29 Mar, 2010
New York City

Stocks in Japan declined after trading ex-dividend ahead of year end. Retail sales increased 4.2% in February, the steepest climb in a decade. Toyota domestic output more than doubles in February. Sony sells its minority stake in HBO Latin America to Time Warner.

[R]5:00 AM New York, 7:00 PM Tokyo – Stocks in Japan declined after trading ex-dividend ahead of year end. Retail sales increased 4.2% in February, the steepest climb in a decade. Toyota domestic output more than doubles in February.[/R]

Japan benchmark averages tumbled for the first time in four days despite rising retail sales in February and on the growing worries that the yen will rebound in the next few weeks.

In Tokyo trading Nikkei 225 Stock Average fell 0.1% or 9.9 to 10, 986.47, and the broader Topix Index decreased 0.1% to 966.13.

In the first section of the Tokyo Stock Exchange 9.5 billion shares worth 576 billion yen were traded and in the second section 144 million shares valued at 2.4 billion yen changed hands.

Of the Nikkei 225 index stocks, 111 rose, 99 fell, and 13 were unchanged. Pioneer Corp. led gainers in the index shares with a rise of 7.3% followed by Clarion Co. Ltd jumping 7.1%.

Nearly 2,450 companies are trading ex-dividend today and pharmaceuticals makers and utility companies led the companies trading on the Tokyo Stock Exchange with dividend payouts. Takeda Pharmaceutical Co. offering the highest dividend yield declined 0.7% and Eisai Co dropped more than 1%.

Japan’s Retail Sales Climb 4.2% in February

Japan’s Ministry of Economy, Trade and Industry reported today that the country’s retail trade rose 4.2% to 10.4 trillion yen in February after rising 2.3% the previous month.

Commercial sales, however, fell 0.6% to 38.6 trillion yen, while wholesale sales declined 2.3% to 28.2 trillion.

The METI also noted that large-scale retail sales tumbled 4% to 1.4 trillion yen.

Before January, retail sales had declined for 15 consecutive months.

Toyota’s Domestic Output Soars 119.6%

Toyota Motor Corp. reported today that its domestic output rose 119.6% to 309,933 units in February from the same period a year earlier.

Overseas output gained 58.8% to 345,247 units.

Domestic sales also increased 49.9% to 149,604 units, while exports climbed 106.9% to 150,232 units in the same period, rising for the second straight month.

Separately, Nissan Motor Co. said domestic output edged up 121.3% to 97, 109 units in February from the comparable year ago period and exports soared 99.1% to 50,279 units.

Nissan''s domestic sales jumped 14.6% to 63,687 units in February and overseas production grew 53.4% to 173,257 units.

Similarly, Honda Motor Co.’s domestic output rose 52.2% to 83,310 units in February and exports tumbled 33.6% to 19,482 units.

Sony Sells HBO Stake for $217 million

Sony Corp. today said that it has sold its stake in pay television service operator HBO Latin America to Time Warner Inc. for $217 million as it seeks to concentrate investments in TV operators in which it holds a majority stake.

The proceeds are already included in the earnings forecast released on February 4.

Nikkei Movers

Konami Corporation led the decliners in the Nikkei 225 Stock Average with a loss of 4.6% followed by losses in Heiwa Real Estate Co Ltd of 3.5%, in Eisai Co., Ltd of 3.4%, in MEIJI Holdings Co., Ltd 3.0% and in Mizuho Financial Group, Inc 3.0%.

Pioneer Corp led gainers in the Nikkei 225 Stock Average with a rise of 7.2% followed by gains in Clarion Co Ltd 7.1%, in Pacific Metals Co., Ltd of 4.8% and in Okuma Corporation 4.7%.

Other Movers

Ain Pharmaciez Inc the pharmacy chain rose 0.8% to 2,689.00 yen.

Elpida Memory, Inc added 3.8% to 1,884.00 yen after the computer-memory maker who maintained its “buy” rating at Bank of America Corp.

Gulliver International Co plunged 10.6% to 3,475.00 yen after the used-car dealer announced that it has lowered its consolidated full-year outlook for revenue from 150 billion yen to 149 billion yen.

Medipal Holdings Corp advanced 1.5% to 1,085.00 yen after the drug wholesaler was upgraded to “buy” from “hold” at Citigroup Global Markets Japan Inc.

Park24 Co., Ltd climbed 2.1% to 932.00 yen after the parking-lot operator was upgraded “outperform” at Daiwa Securities Capital Markets Co.

Sanyo Shokai Ltd gained 3.2% to 352.00 yen after the clothing retailer was upgraded to “neutral” from “underperform” at Daiwa Securities Capital Markets Co.

Seven & I Holdings Co., Ltd added 2.8% to 2,232.00 yen after the retailer was upgraded to “overweight” from “equal-weight” at Morgan Stanley.

Shinko Electric Industries Co increased 4.5% to 1,434.00 yen after the semiconductor package maker was upgraded to “overweight” from “neutral” at JPMorgan Chase & Co.