Lower Open Expected For Japan Stock Market
Futures point to a moderately lower open Friday for the Japan stock market. Traders get a mixed lead from Wall Street, where markets finished slightly higher despite having spent nearly the entire day in the red.
A round of profit taking sent the Japanese stock market lower on Thursday.
The benchmark Nikkei 225 Average closed down 140.96 points or 1.27 percent at 10.949.09.
Among the Nikkei component stocks, there were 38 closing higher, 178 were lower and 9 were unchanged.
The broader TOPIX index declined 8.90 points on the session or 0.90 percent to finish at 978.17.
First Section trading volume was 2.18 billion shares.
Trading came as the government reported exports for March increased 43.5 percent from a year earlier.
The auto makers were in focus, as Moody's Investors Service issued a downgrade for Toyota Motor due to uncertainty involving "product quality" and profitability. Shares of Toyota closed down 50 yen or 1.37 percent. Elsewhere in the sector, Mazda was down 1 yen or 0.37 percent, Mitsubishi Motor was unchanged, Honda was down 60 yen or 1.85 percent and Subaru maker Fuji Heavy was up 5 yen or 1.02
A strengthening yen hurt the exporters, with Sony closing down 70 yen or 2.11 percent, Canon down 30 yen or 0.70 percent, Sharp was down 19 yen or 1.55 percent and Panasonic down 17 yen or 1040 percent. Rival electronics maker Pioneer Corp managed a gain of 8 yen or 2.27 percent, while Hitachi was up 9 yen or 2.28 percent.
The shippers were mixed, with Kawasaki Kisen Kaisha up 8 yen or 2.04 percent, Nippon Yusen up 1 yen or 0.26 percent and Mitsui OSK Lines was down 5 yen or 0.70 percent.
In overseas trading on Thursday, U.S. markets moved higher near the end of the session, having spent nearly all day in the red. At the close, the Dow Jones Industrial Average was up 9.37 points or 0.08 percent at 11,134.29, the Nasdaq Composite index was up 14.46 points or 0.58 percent at 2,519.07 and the Standard & Poor's 500 index was up 2.74 points or 0.23 percent at 1,208.67.
In other Asia/Pacific region trading on Thursday, Hong Kong's Hang Seng index was down 55.09 points or 0.26 percent at 21,454.94.
The Shanghai Composite index in China was down 33.79 points or 1.11 percent at 2,999.48.
In South Korea, the KOSPI/Seoul Composite index was down 8.06 points or 0.46 percent at 1,739.52.
The Taiwan Weighted Index was down 11.84 points or 0.15 percent at 7,978.69.
Friday, April 23, 2010
Japanese Bonds May Decline
Japanese bonds may fall, paring this week's advance, as concern about the nation's fiscal health and gains in U.S. shares curb demand for government debt.
Ten-year yields are likely to climb from near the lowest level since March after Fitch Ratings said yesterday the nation's swelling debt burden may put pressure on its sovereign AA- rating. Concern about Japan's financial health may ease when the government releases its fiscal rehabilitation plan in June, Finance Minister Naoto Kan said after Fitch's announcement.
"Bonds will be bearish, influenced by U.S. markets," said Kazuhiko Sano, chief strategist in Tokyo at Citigroup Global Markets Japan Inc., a unit of New York-based Citigroup Inc. Ten- year yields may climb to 1.33 percent today, he said.
Bond futures for June delivery lost 0.11 to 139.23 as of 9:01 a.m. at the Tokyo Stock Exchange.
The benchmark 10-year note hasn't traded yet today at Japan Bond Trading Co., the nation's largest interdealer debt broker. The yield on the 1.4 percent security due March 2020 fell 1.5 basis points to 1.315 percent yesterday. Yields, which reached 1.305 percent on April 19, the lowest since March 11, are down 2.5 basis points this week.
Japan's finances have come under scrutiny since January, when Standard and Poor's cut the outlook of the nation's AA rating to "negative" from "stable." Prime Minister Yukio Hatoyama will unveil a fiscal plan in June.
"Such concerns will probably ease once the fiscal framework is announced as scheduled," Kan told reporters in Washington yesterday before a meeting of finance ministers and central bankers from the Group of Seven nations.
Treasuries slid yesterday after U.S. initial claims for unemployment benefits fell. A report next week is estimated by economists to show that Japan's jobless rate declined to 4.8 percent last month, the lowest since March 2009.
Japanese bonds may fall, paring this week's advance, as concern about the nation's fiscal health and gains in U.S. shares curb demand for government debt.
Ten-year yields are likely to climb from near the lowest level since March after Fitch Ratings said yesterday the nation's swelling debt burden may put pressure on its sovereign AA- rating. Concern about Japan's financial health may ease when the government releases its fiscal rehabilitation plan in June, Finance Minister Naoto Kan said after Fitch's announcement.
"Bonds will be bearish, influenced by U.S. markets," said Kazuhiko Sano, chief strategist in Tokyo at Citigroup Global Markets Japan Inc., a unit of New York-based Citigroup Inc. Ten- year yields may climb to 1.33 percent today, he said.
Bond futures for June delivery lost 0.11 to 139.23 as of 9:01 a.m. at the Tokyo Stock Exchange.
The benchmark 10-year note hasn't traded yet today at Japan Bond Trading Co., the nation's largest interdealer debt broker. The yield on the 1.4 percent security due March 2020 fell 1.5 basis points to 1.315 percent yesterday. Yields, which reached 1.305 percent on April 19, the lowest since March 11, are down 2.5 basis points this week.
Japan's finances have come under scrutiny since January, when Standard and Poor's cut the outlook of the nation's AA rating to "negative" from "stable." Prime Minister Yukio Hatoyama will unveil a fiscal plan in June.
"Such concerns will probably ease once the fiscal framework is announced as scheduled," Kan told reporters in Washington yesterday before a meeting of finance ministers and central bankers from the Group of Seven nations.
Treasuries slid yesterday after U.S. initial claims for unemployment benefits fell. A report next week is estimated by economists to show that Japan's jobless rate declined to 4.8 percent last month, the lowest since March 2009.
Thursday, April 15, 2010
Stock futures fall, point to lower opening
Stock futures are falling after a report shows initial claims for unemployment benefits rose unexpectedly for the second straight week.
The Labor Department says first-time requests for jobless benefits rose to 484,000 last week, the highest level since late February. Economists were expecting claims to fall to 440,000. High unemployment is a stumbling block to a sustained economic recovery.
Stocks are set for a pullback after five straight days of gains pushed the Dow Jones industrial average above 11,000 and the Standard & Poor's 500 index above 1,200 for the first time in 18 months.
Dow Jones industrial average futures are down 24, or 0.2 percent, to 11,041. Standard & Poor's 500 index futures dropped 3.50, or 0.3 percent, to 1,203.10, while Nasdaq 100 index futures fell 3.25, or 0.2 percent, to 2,023.25.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
NEW YORK (AP) — Stock futures are falling Thursday as investors pause after five straight days of gains.
The latest surge in stocks sent the Dow Jones industrials average above 11,000 and the Standard & Poor's 500 index above 1,200 for the first time in a year and a half.
Overseas markets were mixed.
The drop in U.S. stock futures comes before the government releases weekly data on unemployment claims and monthly reports on industrial production and regional manufacturing.
The weekly jobs report will be a primary focus for traders. Initial claims for unemployment rose unexpectedly last week, signaling that the job market remains tight. High unemployment is considered a key stumbling block to a strong, sustained economic recovery.
Economists polled by Thomson Reuters, on average, forecast the number of people seeking unemployment benefits for the first time fell to 440,000 last week from 460,000 a week earlier. The Labor Department report is due out at 8:30 a.m. EDT.
A separate report is expected to show industrial production grew in March for the ninth straight month. Unlike the jobs or housing market, the manufacturing sector has shown steady, consistent growth as the economy emerges from recession.
Economists expect production at the nation's factories, mines and utilities rose 0.3 percent last month. The report from the Federal Reserve is due out at 9:15 a.m. EDT.
Two regional reports on manufacturing are also due out. The Empire State and Philadelphia Federal Reserve manufacturing indexes will provide snapshots of regional manufacturing activity.
Ahead of the opening bell, Dow Jones industrial average futures fell 21, or 0.2 percent, to 11,044. Standard & Poor's 500 index futures dropped 3.10, or 0.3 percent, to 1,203.50, while Nasdaq 100 index futures fell 5.00, or 0.3 percent, to 2,021.50.
Stocks rose sharply Wednesday after strong economic and earnings reports. The Dow rose 104 points.
JPMorgan Chase & Co. and Intel Corp. both reported better-than-expected earnings and provided upbeat outlooks for the economy.
The Commerce Department said retail sales jumped 1.6 percent in March, the third straight month of gains. The growth topped economists' forecasts. The Federal Reserve's beige book report on regional economic activity showed a recovery is taking hold in most parts of the country.
Meanwhile, bond prices rose Thursday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.85 percent from 3.87 percent late Wednesday.
The dollar rose against other major currencies. Oil rose, while gold fell.
Overseas, Britain's FTSE 100 rose 0.1 percent, Germany's DAX index dropped less than 0.1 percent, and France's CAC-40 rose less than 0.1 percent. Japan's Nikkei stock average rose 0.6 percent.
Stock futures are falling after a report shows initial claims for unemployment benefits rose unexpectedly for the second straight week.
The Labor Department says first-time requests for jobless benefits rose to 484,000 last week, the highest level since late February. Economists were expecting claims to fall to 440,000. High unemployment is a stumbling block to a sustained economic recovery.
Stocks are set for a pullback after five straight days of gains pushed the Dow Jones industrial average above 11,000 and the Standard & Poor's 500 index above 1,200 for the first time in 18 months.
Dow Jones industrial average futures are down 24, or 0.2 percent, to 11,041. Standard & Poor's 500 index futures dropped 3.50, or 0.3 percent, to 1,203.10, while Nasdaq 100 index futures fell 3.25, or 0.2 percent, to 2,023.25.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
NEW YORK (AP) — Stock futures are falling Thursday as investors pause after five straight days of gains.
The latest surge in stocks sent the Dow Jones industrials average above 11,000 and the Standard & Poor's 500 index above 1,200 for the first time in a year and a half.
Overseas markets were mixed.
The drop in U.S. stock futures comes before the government releases weekly data on unemployment claims and monthly reports on industrial production and regional manufacturing.
The weekly jobs report will be a primary focus for traders. Initial claims for unemployment rose unexpectedly last week, signaling that the job market remains tight. High unemployment is considered a key stumbling block to a strong, sustained economic recovery.
Economists polled by Thomson Reuters, on average, forecast the number of people seeking unemployment benefits for the first time fell to 440,000 last week from 460,000 a week earlier. The Labor Department report is due out at 8:30 a.m. EDT.
A separate report is expected to show industrial production grew in March for the ninth straight month. Unlike the jobs or housing market, the manufacturing sector has shown steady, consistent growth as the economy emerges from recession.
Economists expect production at the nation's factories, mines and utilities rose 0.3 percent last month. The report from the Federal Reserve is due out at 9:15 a.m. EDT.
Two regional reports on manufacturing are also due out. The Empire State and Philadelphia Federal Reserve manufacturing indexes will provide snapshots of regional manufacturing activity.
Ahead of the opening bell, Dow Jones industrial average futures fell 21, or 0.2 percent, to 11,044. Standard & Poor's 500 index futures dropped 3.10, or 0.3 percent, to 1,203.50, while Nasdaq 100 index futures fell 5.00, or 0.3 percent, to 2,021.50.
Stocks rose sharply Wednesday after strong economic and earnings reports. The Dow rose 104 points.
JPMorgan Chase & Co. and Intel Corp. both reported better-than-expected earnings and provided upbeat outlooks for the economy.
The Commerce Department said retail sales jumped 1.6 percent in March, the third straight month of gains. The growth topped economists' forecasts. The Federal Reserve's beige book report on regional economic activity showed a recovery is taking hold in most parts of the country.
Meanwhile, bond prices rose Thursday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.85 percent from 3.87 percent late Wednesday.
The dollar rose against other major currencies. Oil rose, while gold fell.
Overseas, Britain's FTSE 100 rose 0.1 percent, Germany's DAX index dropped less than 0.1 percent, and France's CAC-40 rose less than 0.1 percent. Japan's Nikkei stock average rose 0.6 percent.
Tuesday, April 13, 2010
Tokyo Shares End Lower On Pre-US Earnings Selling
-Tokyo stocks fell Tuesday as trepidation before imminent U.S. earnings and a resurgent yen triggered selling across a broad range of sectors, while some shares also moved sharply on earnings-related media reports.
The Nikkei 225 Stock Average fell 90.67 points, or 0.8%, to 11,161.23. The Topix index of all the Tokyo Stock Exchange First Section issues fell 6.34 points, or 0.6%, to 988.44, with 28 of 33 subindexes ending in negative territory.
Trading volume continued to look relatively robust in totaling well over 2.3 billion shares.
The market was lower from the opening bell, as investors engaged in protective selling ahead of imminent U.S. earnings reports, while also taking profits in recent gainers.
"Investors are in wait-and-see mode ahead of U.S. earnings, and Intel's in particular," said Hiroichi Nishi, general manager at Nikko Cordial Securities, adding that the Nikkei remains technically overheated.
Selling accelerated briefly in the afternoon session as the yen rose against its major rivals. As of 0600 GMT the dollar traded at Y92.77, while the euro was at Y126.10.
Broad market selling took a toll on heavyweight Fast Retailing, which closed down 1.7% at Y14,970. Among hard-hit shippers, Mitsui OSK lost 2.6% to Y667 after a brokerage downgrade.
Steelmakers were the worst performers by sector, despite a Nikkei report on Tokyo Steel that it will boost steel production to 180,000 tons this month, a 20% hike from March, thanks to a rebound in Asian steel demand.
"This isn't bad news, but it has already been priced into steel shares; their April-June period is likely to be strong," said an analyst at a Japanese asset management company. He added that investors are now shifting attention to July-September quarterly earnings, which could be squeezed by rising coking coal prices.
Tokyo Steel lost 2.8% to Y1,191, while bellwethers Nippon Steel and JFE Holdings dropped 2.4% to Y359, and 2.9% to Y3,675, respectively.
General contractor Kajima lost 3.0% to Y230 on heavy volume, following a Nikkei report that the firm now expects an operating loss of over Y10 billion in its just-ended fiscal year, rather than the Y21 billion profit it had previously forecast.
"Selling (in Kajima shares) may not drag on, as its bottom line is still expected to be in the black," said a local trader.
After the closing bell, Kajima said it has revised down its group net profit outlook for the period to Y13 billion from Y16 billion, and now expects a group operating loss of Y9 billion.
Sanyo Electric shares jumped after going bid-only early, closing up 1.3% to Y154 on six times normal volume, largely on short-covering triggered by a Nikkei report that its group operating profit is likely to rise by some 50% to more than Y45 billion for the fiscal year ending March, 2011--thanks to the strong sales networks of its new parent Panasonic.
"The profit figure could easily change depending on how Sanyo and Panasonic integrate," noted a brokerage analyst, adding that today's buying included a good deal of speculative buying.
Battery maker GS Yuasa also ended up 4.8% at Y667 after a Ministry of Economy, Trade and Industry (METI) report that said hybrid and other advanced "green" cars will likely account for about 50% of new domestic car sales by 2020, up from the current 10%.
-Tokyo stocks fell Tuesday as trepidation before imminent U.S. earnings and a resurgent yen triggered selling across a broad range of sectors, while some shares also moved sharply on earnings-related media reports.
The Nikkei 225 Stock Average fell 90.67 points, or 0.8%, to 11,161.23. The Topix index of all the Tokyo Stock Exchange First Section issues fell 6.34 points, or 0.6%, to 988.44, with 28 of 33 subindexes ending in negative territory.
Trading volume continued to look relatively robust in totaling well over 2.3 billion shares.
The market was lower from the opening bell, as investors engaged in protective selling ahead of imminent U.S. earnings reports, while also taking profits in recent gainers.
"Investors are in wait-and-see mode ahead of U.S. earnings, and Intel's in particular," said Hiroichi Nishi, general manager at Nikko Cordial Securities, adding that the Nikkei remains technically overheated.
Selling accelerated briefly in the afternoon session as the yen rose against its major rivals. As of 0600 GMT the dollar traded at Y92.77, while the euro was at Y126.10.
Broad market selling took a toll on heavyweight Fast Retailing, which closed down 1.7% at Y14,970. Among hard-hit shippers, Mitsui OSK lost 2.6% to Y667 after a brokerage downgrade.
Steelmakers were the worst performers by sector, despite a Nikkei report on Tokyo Steel that it will boost steel production to 180,000 tons this month, a 20% hike from March, thanks to a rebound in Asian steel demand.
"This isn't bad news, but it has already been priced into steel shares; their April-June period is likely to be strong," said an analyst at a Japanese asset management company. He added that investors are now shifting attention to July-September quarterly earnings, which could be squeezed by rising coking coal prices.
Tokyo Steel lost 2.8% to Y1,191, while bellwethers Nippon Steel and JFE Holdings dropped 2.4% to Y359, and 2.9% to Y3,675, respectively.
General contractor Kajima lost 3.0% to Y230 on heavy volume, following a Nikkei report that the firm now expects an operating loss of over Y10 billion in its just-ended fiscal year, rather than the Y21 billion profit it had previously forecast.
"Selling (in Kajima shares) may not drag on, as its bottom line is still expected to be in the black," said a local trader.
After the closing bell, Kajima said it has revised down its group net profit outlook for the period to Y13 billion from Y16 billion, and now expects a group operating loss of Y9 billion.
Sanyo Electric shares jumped after going bid-only early, closing up 1.3% to Y154 on six times normal volume, largely on short-covering triggered by a Nikkei report that its group operating profit is likely to rise by some 50% to more than Y45 billion for the fiscal year ending March, 2011--thanks to the strong sales networks of its new parent Panasonic.
"The profit figure could easily change depending on how Sanyo and Panasonic integrate," noted a brokerage analyst, adding that today's buying included a good deal of speculative buying.
Battery maker GS Yuasa also ended up 4.8% at Y667 after a Ministry of Economy, Trade and Industry (METI) report that said hybrid and other advanced "green" cars will likely account for about 50% of new domestic car sales by 2020, up from the current 10%.
Thursday, April 1, 2010
US Stock Futures Set To Recover
US stock futures rose today, driven by gains in Asia and Europe. While futures on the Dow Jones Industrial Average climbed 50 points to 10847, those on the S&P 500 gained 4.9 points to 1170.1. Meanwhile, Nasdaq 100 futures added 3.25 points to 1959.
The Asian and European markets rose with the release of strong Chinese and European manufacturing data. While the Purchasing Managers Index in China depicted a rise in manufacturing activity for the thirteenth consecutive month in March, manufacturing output in the UK posted its strongest growth in over 15 years. Meanwhile, growth in Eurozone output was the highest in 40 months. These reports drove shares in Hong Kong to the highest level achieved in over a couple of months. The European indexes were also trading higher at midday.
Investors today are awaiting various economic reports, such as weekly jobless claims, monthly car sales from Ford Motor (NYSE: F) and the manufacturing survey by the Institute for Supply Management for March. Although these reports might result in a brief upswing in the market, nothing significant is likely to happen until the key nonfarm payrolls report is released on Friday after the close of the markets, according to David Jones, chief market strategist at IG Index in London.
Traders seem to be wary of the data, following the unsatisfactory employment report by ADP. Some of the stocks that may be in focus today are Primerica, which is debuting today following its IPO at $15 a share, and Research In Motion (NASDAQ: RIMM). RIMM has declined by over 5% in pre-market trading after the company fell short of the forecasted quarterly revenues.
US stock futures rose today, driven by gains in Asia and Europe. While futures on the Dow Jones Industrial Average climbed 50 points to 10847, those on the S&P 500 gained 4.9 points to 1170.1. Meanwhile, Nasdaq 100 futures added 3.25 points to 1959.
The Asian and European markets rose with the release of strong Chinese and European manufacturing data. While the Purchasing Managers Index in China depicted a rise in manufacturing activity for the thirteenth consecutive month in March, manufacturing output in the UK posted its strongest growth in over 15 years. Meanwhile, growth in Eurozone output was the highest in 40 months. These reports drove shares in Hong Kong to the highest level achieved in over a couple of months. The European indexes were also trading higher at midday.
Investors today are awaiting various economic reports, such as weekly jobless claims, monthly car sales from Ford Motor (NYSE: F) and the manufacturing survey by the Institute for Supply Management for March. Although these reports might result in a brief upswing in the market, nothing significant is likely to happen until the key nonfarm payrolls report is released on Friday after the close of the markets, according to David Jones, chief market strategist at IG Index in London.
Traders seem to be wary of the data, following the unsatisfactory employment report by ADP. Some of the stocks that may be in focus today are Primerica, which is debuting today following its IPO at $15 a share, and Research In Motion (NASDAQ: RIMM). RIMM has declined by over 5% in pre-market trading after the company fell short of the forecasted quarterly revenues.
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