Japan Stocks Eke Out Gain as Electronics Boost Gauge; Banks Drop – Bloomberg

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A man looks at an electronic stock board outside a securities firm in Tokyo.

Shares in Tokyo edged up for a second day, as electronics makers supported the Topix index while bank shares dragged the most on the gauge.

Air-bag and parts makers advanced after Takata Corp. filed for bankruptcy in the U.S. New home sales in the U.S. totaled 610,000 in May compared with the median economist estimate for 590,000, data released Friday showed. Trading remained thin in Tokyo, with volume on the Topix index 22 percent below the 30-day average.

“There’s a lack of reasons to move both at home and abroad, and we continue to see a gridlocked market,” said Hiroyasu Iida, head of the investment research center at Aizawa Securities Co. in Tokyo. “The yen has moved little beyond around 111 per dollar, U.S. housing data hasn’t been a reason to move on and it’s difficult for investors to buy the market up.”

Takata filed for bankruptcy more than eight years after initial recalls involving its defective air bags spiraled into the biggest safety crisis in automotive history. The Japanese air-bag maker said it’s selling all of its assets and businesses worldwide to Key Safety Systems Inc. for 175 billion yen ($1.57 billion). Takata shares didn’t trade Monday and will be delisted on July 27. The stock lost three quarters of its value last week after news of its bankruptcy filing was first reported.

“We’re suffering from a lack of reasons to move on, and the market is becoming a slightly boring one,” said Kiyoshi Ishigane, chief strategist at Mitsubishi UFJ Kokusai Asset Management Co. in Tokyo. “U.S. home related data had been lackluster lately, so having some good data coming out from that is positive for the market.”

Summary

  • Topix +0.1% at 1,612.21 at the close in Tokyo after declining as much as 0.1%
  • Nikkei 225 +0.1% at 20,153.35
  • Yen little changed at 111.31 per dollar, after gaining 0.2% over previous four days
  • JSP +4.9%; Initiated as buy at Ichiyoshi Research
  • Ashimori Industry +13% after surging as much as 19%, Nihon Plast +2%; air-bag and parts makers rise after Takata files for bankruptcy
  • Gauge of energy explorers +1.7%, best performance on Topix after crude oil rises 1%, rallying for a third day, trimming biggest monthly loss in almost a year
    • Inpex +1.8%; Japan Petroleum Exploration +1.2%
  • Sumitomo Mitsui Financial Group -1.4%, Mizuho Financial Group -1%
    • NOTE: Japanese Banks at Risk as Borrowing in Dollars Doubles, BIS Says
  • Toshiba -3.1%; TSE to demote co. to second section from first section on Aug. 1
  • Tokyu Fudosan -2.5%; cut to underperform at Credit Suisse
  • Misumi Group +2.9%; Goldman Sachs raises PT
  • Sumitomo Dainippon -6.1%; co. says global Phase 3 study for napabucasin, a stemness inhibitor for gastric, gastro-esophageal junction cancers, was unlikely to reach its primary endpoint of superior survival
  • Hitachi Maxell +2.5%; SMBC Nikko raises PT to 2,700 yen from 2,400 yen

For more on Japan markets:
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Fight for New Cigarette Substitute Heats Up Japan: QuickTake Q&A