Filed under: Equities, Economy, Asia, Japan

The Tokyo equities markets were lower on Thursday after the Bank of Japan chose to maintain interest rates at their current level. The Nikkei 225 dropped. 0.5 percent to 16,163.87, while the Topix index was 0.6 percent lower to 1,582.04. Declines came in both domestic and export-focused sectors.

Real estate was one exception to the declines on the day, as the sector as a whole gained 0.3 percent on the expectation that land prices will soon emerge from deflation nationwide. In the oil sector, Inpex added 1.9 percent to ¥968,000 on an upgrade of its full year expectations for recurring profits.

The second-largest advertising company in Japan, Hakuhodo, added 4.9 percent to ¥7,010 on an upgrade from “neutral” to “outperform” from Credit Suisse, citing the company’s apparent undervaluation.

Nissin Food gained 5.5 percent to ¥3,630 on an increased recommendation from Merrill Lynch, from “sell” to “buy”, after the instant noodle maker bid for Myojo Foods. Myojo gained 2.6 percent to ¥883.

Among losers, the insurance sector dropped 1.9 percent as a whole, with general insurer Sompo Japan 1.6 percent lower to ¥1,411. Also declining was the transport equipment sector, which fell 1 percent. Toyota dropped 0.8 percent to ¥7,230.

Filed under: Bonds, Economy, US, Europe, UK, Japan

Prices for government bonds were up both in the United States and in Europe and the UK on Tuesday as producer price inflation fell more than had been anticipated. Core inflation was down more than in any month since August 1993. Meanwhile, while retail sales were down a bit less than had been expected in October, September’s numbers were revised downward. Both reports led to renewed hopes in some quarters that the Federal Reserve might drop interest rates early in the new year.

Yields on the two-year US Treasury bond dropped 3 basis points to a yield of 4.747 percent, while the ten-year bond was 3.7 basis points lower to 4.575 percent by the middle of the session in New York.

The price gains in the US helped Eurozone bonds. Economic growth in the region has been weaker than had been expected, while business sentiment in German was lower. Late in the day in London, the two-year Schatz had dropped 0.6 basis points to 3.703 percent, while the ten-year Bund was 1.5 basis points lower to a yield of 3.714 percent.

Inflation came in lower than expected in the UK. While October’s inflation was at 2.4 percent on an annualized basis, above what the Bank of England wants, it was less than analysts had thought it would be. The two-year gilt was yielding 4.957 percent, down 4.6 basis points, while the ten-year gilt was down 3.3 basis points to a yield of 4.531 percent.

Bucking the trend, the yield on ten-year Japanese government bonds added 6.5 basis points to yield 1.72 percent. Prices were down on new data that had the Japanese economy growing at more than twice the rate that had been expected in the third quarter.

Filed under: Equities, Economy, Asia, Japan

Tokyo equities markets saw decline on Monday as the Nikkei 225 fell 0.6 percent to 16,022.46 after going below 16,000 earlier in the day. The Topix index was 0.8 percent lower to 1,568.76.

The losses came on anticipated gross domestic product figures, due Tuesday, which many expect will say that the Japanese economy only grew at a 1 percent annual rate in the third quarter. If these figures turn out to be correct, it would be the slowest expansion in the Japanese economy since 2004. Furthermore, data released Friday showed that machinery orders were down 7.4 percent in September from the same month last year. Both news items increased concerns that Japan’s economic recovery is losing momentum.

Declining demand for fixed-line telephones led to a 9.4 percent drop in operating profits in the fiscal first half for NTT, which dropped 1 percent on the session to ¥571,000.

Video game and slot machine maker Sega Sammy fell 8.4 percent to ¥2,030 on a full-year profit prediction that was lowered by 20 percent.

In the retail sector, Fast Retailing closed 2.3 percent lower to ¥9,990. In other domestically-focused sectors, SMFG, one of Japan’s leading banks, dropped 1.6 percent to ¥1.22 million, while machinery products manufacturer Fanuc fell 0.9 percent to ¥10,360.

Filed under: Bonds, Economy, US, Europe, UK, Japan

Prices and yields on US Treasury bonds were mixed on Thursday on data that was equally mixed. The trade deficit narrowed less than had been expected in September. On the other hand, consumer confidence was lower in the US, with the University of Michigan’s consumer confidence index down to 92.3 when a figure of 93.6 had been expected. In addition import prices were lower and unemployment claims were also down. Another factor in the day’s moves was relatively low interest in an auction of three-year paper on Wednesday; however, analysts were still optimistic for an upcoming auction of ten-year bonds.

At midday in New York, yields on the ten-year Treasury bond had dropped 0.2 basis points to 4.635 percent, but two-year yields were up b y 0.7 basis points to 4.756 percent.

In Europe, prices for longer-dated government bonds were higher but shorter-dated bonds held steady on the expectation that the European Central Bank will issue another interest rate hike in December. The two-year Schatz sat at a yield of 3.731 percent, while the ten-year Bund dropped 0.7 basis points to a yield of 3.740 percent.

Gilt prices in the UK were higher after the Bank of England’s Monetary Policy Committee raised interest rates, as had been expected. The two-year gilt fell 1.6 basis points to yield 5.073 percent, while the ten-year gilt dropped 2.9 basis points to 4.544 percent.

In Japan, the ten-year JGB dropped 2 basis points to a yield of 1.7 percent ahead of new gross domestic product date, to be released next week.

Filed under: Equities, Economy, Asia, Japan

The Tokyo equities markets were lower on Wednesday on sell-offs in the telecommunications sector. The Nikkei 225 dropped 16,215.74, a decline of 1.1 percent, while the Topix index was 1.2 percent lower to 1,597.50.

The automobile manufacturing sector saw gains. Toyota Motor added 1.8 percent to ¥7,230 after it reported record profits in an interim report and predicted that operating profits for the full year will be at ¥2,200 billion. Isuzu Motor, meanwhile, added 12.1 percent to ¥465 on the news that Toyota will acquire a 5.9 percent share in the company.

In the telecommunications sector, Softbank dropped 4.1 percent to ¥2,340 in anticipation of the release of an earnings report. After the close, it said that it had seen profit in the first half of its fiscal year on acquisitions in its telecoms operations and better performance in its internet business.

Astellas Pharma was down 1.7 percent to ¥5,200 on a reduced full-year prediction and on negative remarks from UBS.

Japan Airlines was 1.4 percent lower to ¥218 on a report that its operating profit was down by half in the first half of its fiscal year and after it said it was cutting its full-year forecast by 24 percent. The air carrier said that its first half profit was affected by slow demand for its domestic flights.

Filed under: Equities, Economy, Asia, Japan

Monday’s rally on Wall Street, in which the Dow Jones Industrial Average added 119 points, helped send the Nikkei 225 higher in Tokyo on Tuesday, but the Topix index remained steady thanks to declines in the banking sector. The Nikkei added 0.2 percent to 16,393.41, while the Topix remained at 1,616.68.

The transport equipment sector was 0.9 percent higher on a day when many export focused stocks saw only limited gains as investors waited out the results of the election in the United States. Nissan Motor added 0.7 percent to ¥1,447, while Toyota was 1 percent higher to ¥7,100.

Digital camera maker Pentax gained 7.5 percent to ¥560 on the announcement that its profit in the half-year ending in September was better than had been anticipated when it revised its forecast for the period downward less than a month ago.

Ube Industries was up 3.5 percent to ¥358 on an upward revision in its six-month earnings forecast. The upgrade prompted Goldman Sachs to raise the chemicals company’s target share price from ¥360 to ¥390.

In domestic sectors, real estate was 1.2 percent higher on the session, with Mitsui Fudosan adding 1.8 percent to ¥2,880. However banks dropped 0.8 percent as a sector as Mitsubishi UFJ fell 0.7 percent to ¥1,450,000.

Golf course operator Accordia Golf, which began trading last week, dropped 7.7 percent to ¥155,000.

Filed under: Equities, Economy, Asia, Japan

The Tokyo markets were nearly even on Monday but ended mixed, with the Nikkei 225 0.1 percent higher to 16,364.76 but the Topix index ending 0.1 percent lower to 1,616.71. Much of the losses came in sectors that depend on exports, with investors worried that new data on unemployment will make the US Federal Reserve reluctant to let interest rates fall.

The electronics sector was lower with Sony down 1.1 percent to ¥4,730, while Sharp dropped 1.2 percent to ¥2,070.

Despite the concerns however, some carmakers were higher. While Nissan Motor fell 0.6 percent to ¥1,437, Toyota Motor added 1 percent to ¥7,030 on reports that it will become Japan’s first company to report that their operating profits for the year were above ¥2,000 billion. Mazda was also higher, gaining 1.9 percent to ¥809 after it reported operating profits that were 55 percent higher in the quarter.

In domestic sectors, retailers saw losses on concerns that a decline in the US economy would hurt the Japanese economy as well. Seven & I dropped 1.6 percent to ¥3,610, while Fast Retailing fell 2.7 percent to ¥10,610 after investors were not happy with sales. Department store operator Marui Company, meanwhile, dropped 8.8 percent to ¥1,417 on a profit warning.

Among banks, SMFG was 1.5 percent lower to ¥1.29 million.

Filed under: Equities, Economy, Asia, Japan

The Tokyo equities markets were lower on Thurdsay, with both the Nikkei 225 and the Topix index dropping 0.2 percent, to 16,350.02 and 1,619.02 respectively. Both export-focused and domestic sectors were instrumental in the declines.

Stocks in technology sectors were hit by bad news out of the United States, including declines in the semiconductors sector and weak manufacturing figures for October. Advantest dropped 1 percent to ¥5,750. In the electronics sector, Matsushita dropped 1.6 percent to ¥2,415, while Pioneer fell 2.9 percent to ¥1,791. Camera manufacturer Canon, meanwhile, was 0.5 percent lower to ¥6,280.

Sectors related to metals were lower on dropping prices for raw materials, as both the non-ferrous metals and metals products sectors were 0.4 percent lower on the session. Sumitomo Metal Mining dropped 1.4 percent to ¥1,530.

The real estate sector was 0.5 percent lower as a whole, with Mitsui Fudosan falling 0.7 percent to ¥2,860.

Gainers included Suzuki Motor, which added 2.4 percent to ¥3,420 on a positive quarterly report and an upgraded full-year prediction.

Bridgestone was even on the day at ¥2,445 on a report of a decline of 34 percent in operating profits in the third quarter. Higher raw materials prices were to blame. The tire maker’s share price was initially lower after the report, but an unchanged full-year forecast helped regain the losses.

Filed under: Equities, Economy, Asia, Japan

The Nikkei 225 was lower on Wednesday in Tokyo, falling 0.2 percent to 16,375.26, while the Topix index gained 0.3 percent to 1,622.51 as banks saw advances.

The banking sector was up 1.4 percent as a whole after the Bank of Japan issued a strong report on the economy. Mitsubishi UFJ added 1.4 percent, matching the sector, to ¥1,490,000. The report has raised hopes that interest rates could be increased sooner than had been expected.

The consumer finance sector also saw gains on the session. Acom was 4.7 percent higher to ¥4,710, while Sanyo Shinpan gained 4.9 percent to ¥4,690 and Takefuji added 6.1 percent to ¥4,500 as investors seemed to decide that recent losses have made share prices in the sector a bargain.

In the telecommunications sector, Softbank fell again, by 4.9 percent to ¥2,435, as it continued to lose customers since number portability was introduced. After questioning from the Fair Trade Commission, Softbank also said Wednesday that it will review its advertisements for price cuts.

Real estate was 0.7 percent lower as a sector on the session, and is down 5 percent in just over a week. Sumitomo Realty & Development dropped 2.1 percent on the session, to ¥3,800.

Filed under: Bonds, Economy, US, Europe, UK, Japan

With the manufacturing index from the Institute of Supply Management down to 51.2 in October, well below the expected 53.0 level and lower than September’s figure of 52.9, prices for US Treasury bonds were up and yields declined on Wednesday. Some analysts see the new figures as beginning to contradict remarks out of the Federal Reserve that interest rates won’t be dropping anytime soon.

In late-morning trade in New York, the two-year Treasury bond was 4.6 basis points lower to 4.663 percent, while ten-year bonds had lost 2.8 basis points to a yield of 4.580 percent.

Yields were also lower in the eurozone and in the UK. Eurozone bonds were lower ahead of Thursday’s scheduled meeting of the European Central Bank, where most analysts expect interest rates to hold at 3.25 percent for the time being. Late in the trading day, the two-year Schatz was 3.9 basis points lower to a yield of 3.632 percent, while the ten-year Bund dropped 3.7 basis points to 3.703 percent. The two-year gilt fell 2.3 basis points lower to 5.010 percent, while the ten-year gilt was 0.5 basis points lower to a yield of 4.510 percent.

In Japan, government bonds were mixed, with two-year issues 2 basis points higher to 0.745 percent but ten-year bonds dropping 0.5 basis points to 1.720 percent amid speculation that the Bank of Japan could raise interest rates by March 2007.

Filed under: Equities, Economy, Asia, Japan

Tokyo’s equities markets were mixed on Tuesday, with the Nikkei 225 0.3 percent higher to 16,399.39 but the Topix index dropping 0.2 percent to 1,617.42 on the session.

The banking sector was 1.2 percent lower as a whole as the possibility of interest rates going up again has declined amid domestic economic data which hasn’t lived up to expectations. Meanwhile, the consumer finance sector saw another round of declines after some companies reduced their earnings estimates for the first half of the year. Aiful declined 1 percent to ¥4,040, while Acom dropped 2 percent to ¥4,500 and Promise ended 3 percent lower to ¥4,230. Sanyo Shinpan Finance fell 5.9 percent to ¥4,470.

The telecommunications sector did little better. Softbank dropped 2.9 percent to ¥2,560 after it became known that Japan’s Fair Trade Commission is concerned about the company’s new pricing plan. The news that Softbank lost around 20,000 customers in the first five days of number portability also contributed to its decline. NTT DoCoMo fell 1.1 percent to ¥179,000, also on a decline in the number of its customers. KDDI, on the other hand, added 0.3 percent to ¥729,000 on a gain of tens of thousands of customers.

An upgraded target share price from Deutsche Bank sent property developer Tokyo Tatemono 1.9 percent higher to ¥1,396.

Filed under: Bonds, Economy, US, Europe, UK, Japan

US Treasury bonds saw prices drop and yields rise after Jeffrey Lacker, the president of the Richmond, Virginia Federal Reserve bank made comments indicating that interest rate hikes were not out of the question, that there was still pressure toward inflation, and that the economy could be tightened further. Mr. Lacker was the only one to vote for a hike in rates at the Fed’s last meeting.

Elsewhere, new data showed US personal income 0.5 percent higher in September, more than had been anticipated, while personal consumption was up less than had been predicted at only a 0.1 percent rise in September. However, the PCE price index was up 2.4 percent year-on-year, more than the 2 percent gain that some Fed officials have said was the high end of the acceptable range.

At late morning in New York the two-year Treasury bond was 1.2 basis points higher to 4.767 percent, while ten-year bonds were up 0.6 basis points to a yield of 4.683 percent.

In the Eurozone, yields were mixed after sell-offs in the US bond market and slow demand for a new auction of government bonds in Italy. The two-year Schatz added 1 basis point to yield 3.723 percent, but the ten-year Bund lost 1.6 basis points to 3.789 percent.

Meanwhile, in the UK, gilts were mixed as well on strong date from the housing market. Two-year gilts added 5.9 basis points to 4.088 percent. Ten-year gilts, on the other hand, dropped 3.6 basis points to 4.564 percent.

In Japan, the ten-year government bond was 1 basis point lower to a yield of 1.730 percent after the Nikkei index dropped 1.9 percent ahead of the Bank of Japan’s latest summary of prices and the economy, published every six months and due on Tuesday.

Filed under: Equities, Economy, Asia, Japan

In Tokyo on Friday equities markets were lower as new consumer price information showed that the Japanese economy might not have completely emerged from deflation, with core consumer prices in September up by only 0.2 percent. The new data makes it fairly certain that the Bank of Japan will not raise interest rates anytime soon.

The Nikkei 225 ended the session at 16,669.07, 0.9 percent lower, while the Topix index dropped 0.8 percent to 1,650.73.

The automobile manufacturing sector managed gains on the session. Nissan was 2.5 percent higher to ¥1,424 even though its quarterly report was not up to expectations. Honda added 2.6 percent to ¥4,270 on an upgraded full-year outlook.

Sony added 1.2 percent to ¥4,880 in a mixed electronics sector. Matsushita dropped 1.8 percent to ¥2,530 before releasing interim figures, but after the session’s close it said it’s operating profits in the first half were up 21 percent.

Banks were lower on the CPI news, with Mitsubishi UFJ 1.3 percent lower to ¥1,510,000. Mizuho Financial dropped 1.9 percent to ¥937,000.

Filed under: Bonds, Economy, US, Europe, UK, Japan

Government bond prices were up and yields fell on Thursday in response to a decision by the US Federal Reserve to keep interest rates steady for the time being as well as its comments following the decision that did not sound too strong a warning on inflation. Also helping prices higher was new data on durable goods orders showing that, excluding transportation goods, orders were up just 0.1 percent in September. The ten-year US Treasury bond dropped 3.8 basis points to a yield of 4.73 percent.

In Europe, meanwhile, ten-year yields also fell in response to the Fed decision. The ten-year Bund dropped 1 basis point to 3.85 percent, while the ten-year gilt was 4 basis points lower to a yield of 4.66 percent. The price gains came as the president of the European Central Bank said that inflation would be an issue for the rest of this year and into next year.

In Japan, government bonds were helped by the US bond market, with the ten-year JGB falling 5 basis points to 1.750 percent. Shorter-dated bonds also saw prices go up and yields drop after an auction of two-year issues saw demand quadruple supply. Yields on two-year bonds were 0.3 basis points lower to 0.755 percent.

Filed under: Equities, Economy, Asia, Japan

Weakness in the consumer finance and securities sectors sent the Tokyo equities markets lower on Wednesday. The Nikkei 225 dropped 0.5 percent to 16,699.30, while the Topix index fell 0.6 percent to 1,653.38. There were losses in a number of other sectors as well.

In the telecommunications sector, NTT DoCoMo was down 2.2 percent to ¥180,000. Softbank dropped 2.5 percent to ¥2,590. The declines came as investors were wary of a possible price war among mobile phone carriers. KDDI, on the other hand, added 1 percent to ¥735,000 after declines on Tuesday.

The electronics sector saw declines as well, with NEC 6 percent lower to ¥639 on the announcement that it will abandon US accounting standards and use Japanese rules, which are less demanding, instead. The move came after it did not file its report for the quarter ending in March on time with the US Securities and Exchange Commission.

Consumer finance companies were hurt when Japan’s ruling Liberal Democratic Party dropped a plan that would have let the lenders charge more than the maximum allowable interest on some loans. Acom dropped 4.9 percent to ¥4,490, while Takefuji fell 5 percent to ¥4,520 and Aiful was 7.2 percent lower to ¥4,140.

The securities sector was 3.2 percent lower as a whole, with Nomura dropping 2.5 percent to ¥2,165 as investors worried about what its quarterly report would reveal. Their fears were borne out when the securities house’s report showed that profits were down by 28.5 percent in its second quarter. Daiwa Securities, meanwhile, fell 4.1 percent to ¥1,381.

Filed under: Equities, Economy, Asia, Japan

The real estate sector helped Tokyo equities markets to gains on Monday, with the Nikkei 225 closing at 16,788.82, up 0.8 percent, and the Topix index adding 0.9 percent to 1,659.39. Elsewhere, the Mothers index of small and mid-cap stocks gained 2.6 percent to 1,239.76.

The banking sector was up as well, advancing 1.6 percent as a whole, benefiting from the fact that as the earnings season begins banks are nearly the last sector to report. Mitsubishi UFJ was 1.3 percent higher to ¥1,510,000.

Real estate, besides still taking advantage of signs that property prices in Japan are continuing to climb, were helped when Goldman Sachs raised the target share prices of the three largest companies in the sector last week. Mitsubishi Estate added 3 percent on the session to ¥2,955, while Mitsu Fudosan gained 3.3 percent to ¥3,020 and Sumitomo Realty & Development was 4.2 percent higher to ¥3,990.

The telecommunications sector was mixed. KDDI dropped 0.9 percent to ¥784,000. On the other hand, NTT DoCoMo added 0.5 percent to ¥188,000 and Softbank was up 3.5 percent to ¥2,685 ahead of an announcement concerning its mobile phone unit.

Construction machinery manufacturer Komatsu was 4.3 percent lower to ¥2,120 after a disappointing quarterly report from Caterpillar in the United States.

Filed under: Equities, Economy, Asia, Japan

The main Tokyo equities markets were lower on Thursday, with the Nikkei 225 down 0.6 percent to 16,551.36 and the Topix index 0.2 percent lower to 1,635.77. However, the Mothers index of small and mid-caps gained 0.8 percent to 1,235.93.

The consumer finance sector was mixed again. There is some feeling that earlier declines have left share prices in the sector undervalued, but early gains on the session were lost for some. Aiful added 0.2 percent to ¥4,510, while Promise gained 0.5 percent to ¥4,310 and Takefuji was up 1.7 percent to ¥4,820. On the other hand, Credit Saison dropped 0.4 percent to ¥4,920.

Real estate was mixed as well, with the sector as a whole up 0.5 percent on the session as signs continue that property prices are rising all over Japan. While Mitsubishi Estate and Mitsui Fudosan each added 0.2 percent, to ¥2,860 and ¥2,895, Sumitomo Realty & Development was 0.5 percent lower to ¥3,790.

Among export-focused stocks, the semiconductors sector saw losses after the US sector declined on bad news from Intel, which issued a lower capital spending forecast. Tokyo Electron fell 3 percent to ¥9,010, while Advantest dropped 4.4 percent to ¥6,070.

Filed under: Equities, Economy, Asia, Japan

In the Tokyo equities markets on Tuesday both the Nikkei 225 and the Topix index dropped 0.5 percent on the session, to 16,611.59 and 1,637.95 respectively, while the Mothers index of small and mid-cap stocks dropped 0.3 percent to 1,178.26. Much of the declines were due to profit-taking after recent gains.

The consumer finance sector was mixed. Aiful added 1.4 percent to ¥4,320 and Credit Saison was 2.1 percent higher to ¥4,900. On the losing side of the ledger, Jaccs dropped 2.2 percent to ¥915, Promise was 3.7 percent lower to ¥4,200, and Takefuji fell 4.3 percent to ¥4,640.

NTT Data, the data unit of NTT, was 3.2 percent lower to ¥571,000 on a downgrade from “buy” to “neutral from Merrill Lynch after its share price met the broker’s target.

The transport equipment sector dropped 1.4 percent as the yen strengthened. Toyota declined even more than the average, falling 1.7 percent to ¥6,770.

Sony, which had rebounded somewhat recently, dropped 1.8 percent to ¥4,790, as the effect of battery recalls, delays, and a claim for damages from one laptop maker that used its batteries accumulated.

Filed under: Equities, Economy, Asia, Japan

Equities markets in Tokyo were higher on Monday as investors looked for bargains. The Nikkei 225 was 0.9 percent higher to 16,692.76, while the Topix index gained 1.1 percent to 1,646.05. The Mothers index of small and mid-cap stocks also saw gains, adding 3.6 percent to 1,181.33.

Consumer finance stocks benefited from the search for good buys. Aiful was up 4.2 percent to ¥4,260 on an upgrade from “sell” to “hold” from Deutsche Securities. Jaccs, which was hurt recently by a profits warning, gained 4.5 percent to ¥936.

The retail sector was 1.4 percent higher as a whole. Seven & I added 1 percent to ¥3,920, while Aeon was 1.3 percent higher to ¥2,795 on the news that its in partnership talks with Daiei. Department store chains Daimaru and Mitsukoshi were 2.8 and 2.9 percent higher, to ¥562 and ¥413 respectively.

In the electronics sector, Sony shared in help from a weak yen, adding 2.5 percent to ¥4,880. The consumer electronics and entertainment conglomerate also benefited from an upgrade from “equal weight” to “overweight” from Morgan Stanley. Sony’s gains came even though Toshiba is asking for damages over a recall of Sony batteries used in its products.

Another export-focused company, construction equipment manufacturer Komatsu, added 1.9 percent to ¥2,180.

Filed under: Equities, Economy, Asia, Japan

Tokyo equities markets were higher on Friday. The Nikkei 225 added 1 percent to 16,536.54, it’s highest close in five months, while the Topix index added 0.9 percent to 1,628.00. The Mother’s index of small and mid-cap stocks added 5.3 percent to 1,140.02 after losses at the beginning of the week.

The retail sector saw a number of gains. Seven & I was 2.6 percent higher to ¥3,880. Aeon added 3.6 percent to ¥2,760 after it was reported that it would purchase a stake in Daiei, which was up 3.7 percent to ¥1,955 on the news. Aeon later said it would discuss buying 15 percent of Daiei. Discount retail chain Don Quijote gained 7.2 percent to ¥2,310 on an upgrade from “neutral” to “outperform” from Credit Suisse.

The major exception to the gains by retailers came from Fast Retailing, which dropped 2.90 percent to ¥11,240 even though it said its annual earnings were up by 19 percent and that they would be another 10 percent higher next year. The decline came on a downgrade from Mizuho Securities.

There were gains in the electronics sector, as well, with the exception of game machine manufacturer Sega Sammy, which fell 7.7 percent to ¥3,100 on disappointment with sales of its pachinko machines. Hitachi added 1.3 percent to ¥699, while Matsushita Electric Industrial gained 2.9 percent to ¥2,635 and Sony was 3.7 percent higher to ¥4,760 on an upgrade from “equal weight” to “overweight” from Morgan Stanley.