News and Reviews Economic Zone of Asia (Japan)
Tokyo Stock End Higher on Earnings Intel; Tokyo Electron +4.1%
Wednesday, April 20, 2011
Tokyo stock market rose sharply on Wednesday as investors welcomed Intel's bullish earnings report and a weaker yen, which helps chip-related shares such as Tokyo Electron and Advantest are widely outperformed the index.
The Nikkei Stock Average rose 165.79 points, or 1.8%, to 9606.82, erasing Tuesday's 1.2% decline. The broader Topix index of all Tokyo Stock Exchange First Section issues rose 9.61 points, or 1.2% to 837.17 with 30 of 33 subindex ended in positive territory.
But trading volume was relatively light, only at 1.76 billion shares.
The market opened stronger after U.S. chip giant Intel reported record quarterly result for the second quarter and provide guidance better than expected. Investors were more intense after Intel President and Chief Executive Paul Otellini said the company anticipates no interruption to the supply line that moves ahead of a major earthquake that hit Japan on March 11.
Despite the strong rise, most market analysts said it was too early to anticipate a more active buying in Japanese stocks, citing the warm trade volume.
"We see the market stronger than expected today, but whether this will continue is unclear," said Yutaka Yoshii, general manager at Mito Securities, referring to the uncertain earnings prospects for many Japanese companies.
Tokyo Electron closed up 4.1% at Y4, 475 and Advantest rose 3.3% at Y1, 452. Among Intel's suppliers, Ibiden rose 6.0% to Y2, 562 while Shinko Electric Industries also jumped 4.6% to Y823.
"If Intel can meet its bullish outlook, there will be another round of buying in stocks, but investors are likely to measure for one or two months in advance whether Intel's target to be achieved," said Takuya Yamada, senior portfolio manager at ITC Investment Partners.
Toshiba rose 3.7% to Y416 after The Nikkan Kogyo Shimbun reported Wednesday that Apple has effectively took Japan's Toshiba as the sole supplier of liquid crystal panels for the iPhone, cancel the original plan to invest in new LCD production facility at Toshiba and Sharp. Sharp is still closed up 0.7% at Y743.
In a statement, Sharp said the story was "contrary to the facts" and urged to withdraw the article and an apology. Toshiba LCD display unit declined comment.
Among other individual stocks in focus, TDK closed down 2.3% to Y3, 890, extending Tuesday's losses of 7.5%, amid concerns about the negative impact on earnings after Seagate Technology PLC agreed to buy a hard disk Samsung Electronics' business drive $ 1.38 billion cash and stock. TDK has been supplying magnetic heads for Samsung. MUFG Morgan Stanley Securities also cut its price on the TDK to Y5, 000 from Y6, 700, while maintaining its Overweight rating.
Shiseido fell 0.7% to Y1, 352 after the cosmetics company lowered sales and profit outlook for the fiscal year ended in March, blaming a weaker consumer sentiment than expected in the country and the impact of natural disasters Japan recently.
Nikkei 225 June futures closed up 170 points, or 1.8%, in 9610 on the Osaka Securities Exchange.
Tokyo Stock End Higher on Earnings Intel; Tokyo Electron +4.1%
Wednesday, April 20, 2011
Tokyo stock market rose sharply on Wednesday as investors welcomed Intel's bullish earnings report and a weaker yen, which helps chip-related shares such as Tokyo Electron and Advantest are widely outperformed the index.
The Nikkei Stock Average rose 165.79 points, or 1.8%, to 9606.82, erasing Tuesday's 1.2% decline. The broader Topix index of all Tokyo Stock Exchange First Section issues rose 9.61 points, or 1.2% to 837.17 with 30 of 33 subindex ended in positive territory.
But trading volume was relatively light, only at 1.76 billion shares.
The market opened stronger after U.S. chip giant Intel reported record quarterly result for the second quarter and provide guidance better than expected. Investors were more intense after Intel President and Chief Executive Paul Otellini said the company anticipates no interruption to the supply line that moves ahead of a major earthquake that hit Japan on March 11.
Despite the strong rise, most market analysts said it was too early to anticipate a more active buying in Japanese stocks, citing the warm trade volume.
"We see the market stronger than expected today, but whether this will continue is unclear," said Yutaka Yoshii, general manager at Mito Securities, referring to the uncertain earnings prospects for many Japanese companies.
Tokyo Electron closed up 4.1% at Y4, 475 and Advantest rose 3.3% at Y1, 452. Among Intel's suppliers, Ibiden rose 6.0% to Y2, 562 while Shinko Electric Industries also jumped 4.6% to Y823.
"If Intel can meet its bullish outlook, there will be another round of buying in stocks, but investors are likely to measure for one or two months in advance whether Intel's target to be achieved," said Takuya Yamada, senior portfolio manager at ITC Investment Partners.
Toshiba rose 3.7% to Y416 after The Nikkan Kogyo Shimbun reported Wednesday that Apple has effectively took Japan's Toshiba as the sole supplier of liquid crystal panels for the iPhone, cancel the original plan to invest in new LCD production facility at Toshiba and Sharp. Sharp is still closed up 0.7% at Y743.
In a statement, Sharp said the story was "contrary to the facts" and urged to withdraw the article and an apology. Toshiba LCD display unit declined comment.
Among other individual stocks in focus, TDK closed down 2.3% to Y3, 890, extending Tuesday's losses of 7.5%, amid concerns about the negative impact on earnings after Seagate Technology PLC agreed to buy a hard disk Samsung Electronics' business drive $ 1.38 billion cash and stock. TDK has been supplying magnetic heads for Samsung. MUFG Morgan Stanley Securities also cut its price on the TDK to Y5, 000 from Y6, 700, while maintaining its Overweight rating.
Shiseido fell 0.7% to Y1, 352 after the cosmetics company lowered sales and profit outlook for the fiscal year ended in March, blaming a weaker consumer sentiment than expected in the country and the impact of natural disasters Japan recently.
Nikkei 225 June futures closed up 170 points, or 1.8%, in 9610 on the Osaka Securities Exchange.
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