Active Investing in Japan

1st-half fiscal 2007 sales of new autos are down 8.1% year-over-year to 2.48M autos. Backout mini-car sales and the figure stands at -8.8%. This is reportedly the lowest level in 33-years and the first time in four-years for mini-cars to have suffered a decline in sales (-6.8% y/y to 896,334 units sold). Ex-mini cars, the best performers were Mitsubishi +13.2% to nearly 37,000 autos sold and Lexus +23.5% to 15,390.

In the mini-car segment, Daihatsu (JP: 7262) controls 32% of the market vs. 30.7% for Suzuki (JP: 7269).

Separately, Toyota (NYSE: TM) (JP: 7203) says internal forecasts show this year will be the first time overseas unit sales have exceeded domestic sales, as overseas units sales are expected to total more than 4.3M autos (est. total sales of 8.6M).

Check out the “Nissan GT-R Countdown!” if you haven’t already.

Japan market summary for Monday (Oct. 1)
Nikkei 225 Stock Average: +60.27 (+0.4%) to 16,845.96
Nikkei 225 futures Osaka: +20 (+0.1%) to 16,850, Singapore (SGX) +15 (+0.1%) to 16,840, Chicago (CME) *9/28 -195 (-1.2%) to 16,765
TOPIX: -0.73 (-0.0%) to 1,615.89; Advancers 687 x decliners 912 (unch. 123), New highs 17 x new lows 21
Jasdaq: -0.80 (-0.0%) to 1,860.52
Yen: slightly weaker against US$ last around 115.45-50 level, weaker by 0.5% against euro to 164.25 level
Notes: Emerging indices MOTHERS and HERCULES up by 0.4% and 0.5%, respectively. Market participants reacted mostly positively to BoJ’s tankan report, noting the latest reading showing unchanged sentiment among large manufacturers was better than an expectations of a small decline and signals stabilization.