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Aug. 3 (Bloomberg) -- Most Japanese stocks rose, led by banks, after Mitsubishi UFJ Financial Group Inc. reported a jump in first-quarter profit. Casio Computer Co. and Fujifilm Holdings Co. slid after posting losses.
Mitsubishi UFJ, the nation’s largest listed bank, advanced 4.6 percent. Smaller rival Resona Holdings Inc. climbed 3.7 percent. Nissan Motor Co. added 5.2 percent after unveiling its first electric car. Casio, Japan’s first maker of waterproof mobile phones, dived 5.3 percent, while Fujifilm sank 3.2 percent.
“Banks’ earnings are solid, given they set aside substantial reserves for bad loans,” said Tomochika Kitaoka, a senior strategist at Mizuho Securities Co. in Tokyo. “People are concerned the market has risen too fast and too high.”
The Nikkei 225 Stock Average was little changed at 10,354.26 as of 10:10 a.m. in Tokyo. The broader Topix index rose 6.03, or 0.6 percent, to 956.29, with two shares gaining for each that fell.
The Topix is headed for a 12th day of gains as better-than- expected results from U.S. and Asian companies led to improved investor confidence. Companies on the gauge traded at 1.23 times their corporate net worth, a level not seen since September 29, according to data compiled by Nikkei Inc.
Mitsubishi UFJ jumped 4.6 percent to 592 yen. Net income jumped 48 percent to 75.9 billion yen ($801 million) in the three months to June 30 because of rising lending income and a gain in stockholdings.
Nissan Gains
Resona, Japan’s most profitable bank last year, climbed 4.3 percent to 1,458 yen. First-quarter net income declined by a third as one-time gains inflated earnings a year earlier. The bank said separately it agreed to buy back preferred shares from Bank of America Corp.’s Merrill Lynch & Co. and will sell common stock to the U.S. company for 103.2 billion yen.
Banks as a group contributed the most to the Topix’s advance, followed by carmakers.
Nissan, Japan’s No. 3 automaker, rose 5.2 percent to 725 yen. Chief Executive Officer Carlos Ghosn said yesterday electric cars will account for at least 10 percent of global vehicle demand by 2020, depending on conditions. The company plans to sell its electric car, the Leaf, in the U.S., Japan and Europe next year.
Casio Computer Co. Ltd. slid 5.3 percent to 736 yen. The company posted a net loss in the first quarter, as sales of digital cameras and mobile phones dropped, the company said.
Fujifilm, the world’s biggest maker of film used in liquid- crystal-display panels, declined 3.2 percent to 2,990 yen, breaking a five-day winning streak. The company swung to a net loss in the first quarter from a year-earlier profit. The stronger yen and weaker demand hurt earnings, the company said.
Nikkei futures expiring in September slid 0.1 percent to 10,360 in Osaka and dipped 0.1 percent to 10,355 in Singapore.
To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net; Toshiro Hasegawa in Tokyo at thasegawa6@bloomberg.net.
Last Updated: August 2, 2009 21:25 EDT
By Masaki Kondo and Toshiro Hasegawa
http://www.bloomberg.com/apps/news?pid=20601080&sid=a1VqDwDvr_Sg
Mitsubishi UFJ, the nation’s largest listed bank, advanced 4.6 percent. Smaller rival Resona Holdings Inc. climbed 3.7 percent. Nissan Motor Co. added 5.2 percent after unveiling its first electric car. Casio, Japan’s first maker of waterproof mobile phones, dived 5.3 percent, while Fujifilm sank 3.2 percent.
“Banks’ earnings are solid, given they set aside substantial reserves for bad loans,” said Tomochika Kitaoka, a senior strategist at Mizuho Securities Co. in Tokyo. “People are concerned the market has risen too fast and too high.”
The Nikkei 225 Stock Average was little changed at 10,354.26 as of 10:10 a.m. in Tokyo. The broader Topix index rose 6.03, or 0.6 percent, to 956.29, with two shares gaining for each that fell.
The Topix is headed for a 12th day of gains as better-than- expected results from U.S. and Asian companies led to improved investor confidence. Companies on the gauge traded at 1.23 times their corporate net worth, a level not seen since September 29, according to data compiled by Nikkei Inc.
Mitsubishi UFJ jumped 4.6 percent to 592 yen. Net income jumped 48 percent to 75.9 billion yen ($801 million) in the three months to June 30 because of rising lending income and a gain in stockholdings.
Nissan Gains
Resona, Japan’s most profitable bank last year, climbed 4.3 percent to 1,458 yen. First-quarter net income declined by a third as one-time gains inflated earnings a year earlier. The bank said separately it agreed to buy back preferred shares from Bank of America Corp.’s Merrill Lynch & Co. and will sell common stock to the U.S. company for 103.2 billion yen.
Banks as a group contributed the most to the Topix’s advance, followed by carmakers.
Nissan, Japan’s No. 3 automaker, rose 5.2 percent to 725 yen. Chief Executive Officer Carlos Ghosn said yesterday electric cars will account for at least 10 percent of global vehicle demand by 2020, depending on conditions. The company plans to sell its electric car, the Leaf, in the U.S., Japan and Europe next year.
Casio Computer Co. Ltd. slid 5.3 percent to 736 yen. The company posted a net loss in the first quarter, as sales of digital cameras and mobile phones dropped, the company said.
Fujifilm, the world’s biggest maker of film used in liquid- crystal-display panels, declined 3.2 percent to 2,990 yen, breaking a five-day winning streak. The company swung to a net loss in the first quarter from a year-earlier profit. The stronger yen and weaker demand hurt earnings, the company said.
Nikkei futures expiring in September slid 0.1 percent to 10,360 in Osaka and dipped 0.1 percent to 10,355 in Singapore.
To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net; Toshiro Hasegawa in Tokyo at thasegawa6@bloomberg.net.
Last Updated: August 2, 2009 21:25 EDT
By Masaki Kondo and Toshiro Hasegawa
http://www.bloomberg.com/apps/news?pid=20601080&sid=a1VqDwDvr_Sg
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