July 10, 2006
Filed under: Equities, Economy, Asia, Japan
Equities markets in Tokyo were up substantially on Monday, with the Nikkei 225 up 1.6 percent to 15,552.81 and the Topix index 1.3 percent higher to 1,594.07.
In the technology sector, chip-making and testing equipment companies saw gains. Advantest was up 2.7 percent to ¥12,130, while Tokyo Electron gained 3.3 percent to ¥8,250.
Electronics companies were also up on the session, with Sony adding 1.2 percent to ¥5,050, Matsushita Electric Industrial up 1.5 percent to ¥2,390, and Canon advancing by 2.3 percent to ¥5,790.
Automobile manufacturers were mixed on currency concerns. Mazda and Toyota gained 1 percent to ¥777 and 1.2 percent to ¥6,050 respectively, while Nissan declined by 0.1 percent to ¥1,238.
The machinery sector was up 1.2 percent as a whole, with Komatsu adding 1.3 percent to ¥2,295. Industrial robots maker Fanuc, meanwhile, gained 4.7 percent to ¥10,120.
Banks benefited from the news that lending was up this month at a rate it hasn’t seen in five years. Mizuho advanced by 3.2 percent to ¥998,000 and Mitsubishi UFJ added 5.2 percent to ¥1,630,000. Also helping banks was the expectation that the Bank of Japan will bring an end to zero interest rates when it meets later this week.
Consumer finance companies saw losses during the session, again on interest rate issues, after the Liberal Democratic Party proposed new rules last week which would drop the maximum allowable interest rate on their loans from 29.2 percent to between 15 and 20 percent. Acom fell 1.8 percent to ¥5,870, while Promise dropped 2.5 percent to ¥5,500, Takefuji declined by 4 percent to ¥5,820, and Aiful was down 7.8 percent to ¥4,840.
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Permalink: Banks take Tokyo markets higher
July 7, 2006
Filed under: Bonds, Economy, US, Europe, UK, Japan
Yields on government bonds were down on Friday, but yields on several issues were higher for the week.
Bond prices in the United States benefited from new employment figures issued by the Department of Labor that showed 121,000 new jobs created in the US in June. This was up from the 92,000 new jobs that were created in May but much lower than the 200,000 new jobs that had been predicted for June in the wake of a private report issued Wednesday. That report, from payroll services company ADP had said that nearly 400,000 jobs had been created during the month. However, the hope that these numbers would help the US Federal Reserve to pause in its series of interest rate hikes was tempered by the report that wage inflation was up by its fastest rate since 2001.
In afternoon trade in New York, two-year Treasury bonds were down 3.4 basis points to a yield of 5.183 percent, still a gain of 2.1 basis points for the week. Meanwhile, ten-year bonds were 5.7 basis points lower to 5.128 percent, a drop of 1.7 percent during the week.
US news on employment also helped Eurozone bonds. The two-year Schatz dropped 3.3 basis points to 3.604 percent, still up 3 basis points on the week, while the ten-year Bund was down 6 basis points to yield 4.056 percent. The Bund remained up 0.2 basis points for the week.
In the UK, the two-year gilt dropped 4.7 basis points over the week to yield 4.171 percent, while the ten-year gilt was yielding 4.639 percent, a decline of 5.6 basis points during the week.
In Japan, the ten-year government bond was down on Friday as well, but at a yield of 1.960 percent was up 1 basis point on the week.
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Permalink: Bond yields fall on Friday; many remain up over week
July 5, 2006
Filed under: Equities, Economy, Asia, Japan
The Tokyo equities markets were down on Wednesday after it was revealed that North Korea had test fired several missiles, but declines were moderate. Some analysts attributed the muted reaction to the tests to the relative strength of the markets, especially after Monday’s strong Tankan report and low unemployment figures from last week. The Nikkei 225 dropped 0.7 percent to 15,523.94 and the Topix index was down 0.8 percent to 1,589.97.
Japan Airlines had losses early in the day as investors feared that an uncertain political situation would make people afraid to fly, but by the end of the day JAL had gained back the losses to close even at ¥277.
The electronics sector saw declines based on fears of what the Korea situation would do to the global economy. Sony dropped 0.8 percent to ¥5,060, while Sharp lost 1.5 percent to ¥1,809 and Matsushita Electric Industrial was down 1.7 percent to ¥2,360.
Automobile manufacturers felt the brunt of investor nervousness more strongly. Toyota fell 1.2 percent to ¥5,940, while Nissan dropped 1.9 percent to ¥1,239 and Honda was down 2.2 percent to ¥3,600.
Companies that have defense-related manufacturing among their interests saw substantial gains. Howa Machinery, which makes firearms in addition to industrial machinery, gained 6.3 percent to ¥204, while Ishikawa Seisakusho, which makes defense equipment in addition to textile machinery, added 17.2 percent to ¥204. However Mitsubishi Heavy Industries, Japan’s biggest manufacturer of defense equipment, was up by only 0.4 percent to ¥496.
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Permalink: Tokyo markets lower after missile tests
Filed under: Bonds, Economy, US, Europe, UK, Japan
Yields were up on government bonds on Wednesday as investors continued to expect interest rates to go up in a number of economies.
In the United States, a report that many more jobs than expected were created in June increased the expectation that the Fed will hike interest rates again in August. If Department of Labor Statistics numbers on Friday bear out today’s jobs numbers from the ADP, it could move analysts to rethink last week’s sentiment that the Fed might pause in its series of rate increases at its August meeting.
At mid-session in New York, the two-year Treasury bond had gained 7.1 basis points to a yield of 5.25 percent, while ten-year issues were yielding 5.235 percent, an increase of 8 basis points.
New data from the service sector in the Eurozone supported the consensus opinion that interest rates there will rise soon. Most analysts expect that when the European Central Bank meets on Thursday it will hold interest rates at their current level, but will signal that new rate hikes will come sooner rather than later.
The two-year Schatz was up 3.9 basis points to 3.603 percent, while the ten-year Bund added 3.1 basis points to a yield of 4.130 percent.
In the UK, meanwhile, the two-year gilt added 1.9 basis points to 4.775 percent, while the ten-year gilt was yielding 4.719 percent, a gain of 3.1 basis points.
Yields on Japanese government bonds were up as expectations grew that the Bank of Japan will end zero interest rates this month . Meanwhile, the furor over the Bank of Japan’s governor and his investment interests seemed to be abating. In addition, North Korea’s missile tests did not seem to have much of an impact on bonds activity.
The five-year Japanese government bond added 3.5 basis points to 1.560 percent, while the ten-year bond was up 0.5 basis points to a yield of 1.985 percent.
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Permalink: Bond yields up on expected interest rate hikes
June 30, 2006
Filed under: Equities, Economy, Asia, Japan
The Tokyo equities markets were up strongly on Friday after Thursday’s gains on Wall Street in the wake of another hike in US interest rates by the Federal Reserve. The Nikkei 225 and the Topix index each added 2.5 percent on the day to 15,505.18 and 1,586.96 respectively. Export-focused stocks were helped by expectations of higher demand in the United States, while domestic stocks also saw advances.
In the electronics sector, Advantest and Tokyo Electron each added 2.8 percent, to ¥11,660 and ¥8,000 respectively..
Construction machinery maker Komatsu gained 3.4 percent to ¥2,340. Industrial robot maker Fanuc was up 3.2 percent to ¥10,280.
Automobile manufacturers also saw gains. Toyota advanced by 4.2 percent to ¥5,990, while Nissan added 5 percent to ¥1,250 after declines earlier in the week. Mazda also gained 5 percent, to ¥717.
The banking and real estate sectors were also up on Friday. Chiba Bank gained 4.5 percent to ¥1,070, while Bank of Yokohama was up 6.6 percent to ¥885 and Mitsui Trust added ¥1,375.
In real estate, Mitsui Fudosan advanced by 4 percent to ¥2,485, Tokyo Tatemono added 4.1 percent to ¥1,226, and Daiwa House gained 5.8 percent to ¥1,830.
Among the losers on the day was department store chain Takashimaya, which was down 0.6 percent to ¥1,436 after it said its first quarter earnings had been lower than had been expected.
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Permalink: Wall Street leads Tokyo markets higher
June 20, 2006
Filed under: Equities, Economy, Japan
Declines in stocks related to commodities sent the Tokyo equities markets lower on Tuesday. The Nikkei 225 dropped 1.4 percent to 14,648.41, while the Topix index declined by 1.1 percent to 1,510.32. The Mother’s index of small and mid-cap stocks was also down, by 2.1 percent.
Transport-related stocks were down on the day. Japan’s largest airline, JAL, lost 2 percent to ¥299 on news of a possible strike on Wednesday that could disrupt flight schedules. Railways were down as well. Hankyu lost 4 percent to ¥535 after it said it had paid more than it intended to for Hanshin Electric Railway, which was down 5.4 percent to ¥848.
Commodities-related stocks fell as concerns continued about the state of the US economy as well as in reaction to Monday’s news that China’s central bank has begun a program to decrease lending, which could see demand for commodities there decline. Sumitomo Metal Mining lost 4.5 percent to ¥1,253, while Mitsui Mining & Smelting dropped 3.8 percent to ¥638.
Falling crude oil prices sent shares in oil-related companies lower. Nippon Oil declined by 0.9 percent to ¥799, while refiner and distributor Cosmo was down 2 percent to ¥502 and Inpex fell 3 percent to ¥890,000.
Glassmakers were also lower on the day. Asahi Glass, Japan’ largest, was down 2.3 percent to ¥1,417, while Nippon Sheet Glass dropped 4.1 percent to ¥615 as investors showed their displeasure that it now owns UK glassmaker Pilkington.
Advances were seen in the pharmaceutical sector, where Daiichi Sankyo added 1.4 percent to ¥2,930, as well as in restaurants, where Yoshinoya D&C added 2.2 percent to ¥229,000 on the prospect that US beef imports might resume soon.
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Permalink: Nikkei, Topix lower on commodity-related stocks
June 19, 2006
Filed under: Equities, Economy, Asia, Japan
The Tokyo equities markets were lower on Monday as export-reliant sectors saw declines on the news that China’s central bank is cutting back on lending. The announcement spurred worries that China’s economy is slowing down. The Topix index was also hurt by declines in the banking sector.
The Nikkei 225 was 0.1 percent lower to 14,860.35, while the Topix dropped 0.5 percent to 1,527.66. Meanwhile, the Mothers index of small and mid-cap stocks closed flat at 1,462.71.
Among companies hit by the news from China were smelter Mitsubishi Materials, which dropped 3 percent to ¥458 and construction machinery manufacturer Komatsu, down 3.5 percent to ¥2,075.
The electrical machinery sector dropped 0.5 percent as a sector. Among electronics companies, Hitachi was down 1.1 percent to ¥743, while Sony dropped 1.6 percent to ¥4,860. In the semiconductor sector, Advantest lost 2.6 percent to ¥10,750.
Among banks, Mizuho lost 1.9 percent to ¥875,000, while Mitsubishi UFJ declined by 2 percent to ¥1,460,000.
Pharmaceuticals and seafood companies, however, saw gains on the day. Strong export sales in the seafood sector saw Nippon Suisan add 3.1 percent to ¥589 and Maruha gain 3.5 percent to ¥325.
The pharmaceuticals sector was up 2.3 percent as a whole. Takeda added 1.7 percent to ¥6,730, Chugai was up 3.4 percent to ¥2,280, and Daiichi Sankyo gained 6.1 percent to ¥2,890.
Ishikawa Seisakusho, which manufactures defence products in addition to textiles, added 17.7 percent on the day to ¥166 as suspicions rose that North Korea is preparing to test a missile in the near future.
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Permalink: China announcement sends Tokyo equities lower
June 16, 2006
Filed under: Equities, Economy, Asia, Japan
Equities markets in Tokyo saw substantial gains on Friday in both domestic and export-focused sectors. The Nikkei 225 ended the day 2.8 percent higher at 14,879.34, while the Topix index added 3.3 percent to 1,534.71.
The steel sector added 4.7 percent as a whole on increased demand around the world. Nippon Steel was up 3.9 percent to ¥405, while Kobe Steel and Sumitomo Metal Mining each advanced by 4.6 percent to ¥339 and ¥1,330 respectively.
Banks were up 4.3 percent as a sector on the expectation that interest rates will rise in July. Mitsubishi UFJ gained 4.2 percent to ¥1,490,000, while Mizuho Financial advanced by 4.9 percent to ¥892,000.
Mitsui Fudosan was up 3.9 percent to ¥2,295 and Daiwa House added 5.1 percent to ¥1,773 as the real estate sector as a whole added 4.1 percent.
Retail saw gains as well. Seven & I advanced by 2.2 percent to ¥3,710, while Aeon gained 4.4 percent to ¥2,500.
The pharmaceuticals sector was up, but only by 0.8 percent and results were mixed for companies within the sector. Astellas Pharmaceuticals added 1 percent to ¥4,020, but Chugai and Daiichi Sankyo lost share value, by 0.9 percent to ¥2,205 and by 2 percent to ¥2,725 respectively.
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Permalink: Tokyo equities markets gain on day
June 14, 2006
Filed under: Equities, Economy, Asia, Japan
Tokyo equities markets were up on Wednesday despite early losses. The Nikkei 225, which was down by over 4 percent on Tuesday, added 0.6 percent to 14,309.56, while the Topix index gained 0.5 percent to 1,466.14. Meanwhile, the Mothers index of small and mid-cap stocks was up 3.7 percent to 1,394.09.
The transport equipment sector added 0.9 percent as a whole. Honda was up 0.7 percent to ¥6,790, while Toyota gained 1.1 percent to ¥5,590 and Mazda advanced by 2.5 percent to ¥618.
An expected decline in rubber prices spurred Goldman Sachs to recommend both Sumitomo Rubber, which it just began covering, and tyre maker Bridgestone. Sumitomo Rubber added 8.2 percent to ¥1,271, while Bridgestone advanced by 1.1 percent to ¥2,190.
Another export-focused sector, electronics, gained 0.6 percent on the day. Mitsubishi Electric added 1 percent to ¥844, while Matsushita Electric Industrial was up 1.4 percent to ¥2,245.
Retailers were up 0.5 percent on the day as a sector, with Aeon advancing by 3.7 percent on the day after recent losses.
In the telecommunications sector, KDDI dropped 1.2 percent to ¥661,000 after it said that personal information on approximately 4 million customers had been disclosed.
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Permalink: Tokyo markets rise slightly
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