Active Investing in Japan

Bloomberg has a concise one-pager covering the major earnings releases from Wednesday. The ones to watch based on market cap include: Honda benefitting from forex (offsetting costs, whereas Nissan’s forex gains were wiped out), Nomura’s trading and asset management gains help to post a big y/y jump in earnings despite growing subprime losses, an area it is trying to bail out and Matsushita posted a y/y earnings gain and will no longer have JVC to mess up its earnings. Note Nintendo is really on a roll. It raised its FY profit guidance by around 40% — it’s trading at a new all-time high, just under 30x forward earnings, seemingly more upside to come; it also boosted its dividend, getting close to 1,000/share, about 1.7% on a forward basis.

* Nikkei 225 Stock Average: -143.61 (-0.8%) to 17,858.42, fell as much as 250 points intra-day
* Nikkei 225 futures Osaka: -160 (-0.9%) to 17,860, Singapore (SGX) 17,875, Chicago (CME) 7/24 — 17,745
* TOPIX: -11.96 (-0.7%) to 1,754.03; Advancers 390 x decliners 1,247 (unchanged 93), New highs 21 x new lows 125; 27/33 sectors posted losses
* Jasdaq: -20 (-0.25%) to 78.68
* Yen gains 0.4% against US$ and euro to 120.18 and 165.96, respectively (latest quote)

nikkei 225

Nikkei 225 futures in Chicago closed down 1.5% to 17,745 on Tuesday.

N225 contracts in Singapore opened down 270 points to 17,740.

Weakness likely to persist through Friday ahead of the parliamentary elections this weekend.

* Nikkei 225 Stock Average: +38.39 (+0.2%) to 18,002.03
* Nikkei 225 futures Osaka: +50 (+0.3%) to 18,020, Singapore (SGX) 18,010, Chicago (CME) 7/24 — 17,745
* TOPIX: +8.70 (+0.5%) to 1,765.99; Advancers 1,002 x decliners 600, New highs 34 x new lows 90 (unchanged 128); 23/33 sectors posted gains
* Jasdaq: +0.46 (+0.6%) to 78.88
* Recent yen strength continues
* Nintendo climbs higher; Nissan’s earnings down, maintains FY profit