Japan Stocks: Calsonic Kansei, Mitsubishi UFJ, Round One, Sony

Japan’s Nikkei 225 (NKY) Stock Average rose 18.83, or 0.2 percent, to 9,816.09 at the 3 p.m. close in Tokyo. The following were among the most active shares in the Japanese market today. Stock symbols are in parentheses after company names.

Calsonic Kansei Corp. (7248) (7248 JT), a maker of car parts and accessories, soared 11 percent to 483 yen, the highest since May 2008. The company will sell land in Kanagawa prefecture for 11.1 billion yen ($138 million). The company will book a gain of 10.7 billion yen from the sale, it said in a statement. Calsonic expects full-year net income to rise 35 percent to 21 billion yen.

Circle K Sunkus Co. (3337 JT), a convenience store operator, increased 2.8 percent to 1,253 yen after saying first-quarter operating profit advanced 30 percent to 4.76 billion yen, citing lower costs.

Cosmos Pharmaceutical Corp. (3349) (3349 JT), a drugstore operator, rose 2.1 percent to 3,395 yen. The retailer’s full-year net income totaled 5.7 billion yen, 37 percent more than expected, Cosmos Pharmaceutical said in a preliminary earnings statement. Good weather boosted sales while lower administration costs contributed to profit, the company said.

Dai-Ichi Seiko Co. (6640 JQ), a maker of electronic and auto parts, slipped 2.8 percent to 3,100 yen, the lowest since Aug. 25. Mizuho Securities Co. cut its investment rating on Dai- Ichi Seiko to “underperform” from “outperform,” saying earnings are being eroded as rivals expand market share for connectors used in tablet devices.

Kyushu Electric Power Co. (9508 JT), a utility based in southwestern Japan, climbed 4.2 percent to 1,447 yen. Yasushi Furukawa, governor of Saga prefecture, said he’s inclined to allow restarting of nuclear reactors following talks with Trade Minister Banri Kaieda, the Nikkei newspaper reported.

Mitsubishi UFJ Financial Group Inc. (8306) (8306 JT), Japan’s biggest publicly traded bank by market value, rose 2.1 percent to 390 yen. The lender is in talks with Royal Bank of Scotland Group Plc (RBS) to buy the U.K. bank’s infrastructure advisory unit in Australia, two people with knowledge of the negotiations said. The Financial Times earlier today reported the two banks are in advanced talks for the Australian business, which was set up by ABN Amro Holding NV.

Separately, Deutsche Bank AG raised its equity rating to “buy” from “hold,” saying the lender may have only a mild profit growth in domestic banking but its expansion in the U.S. and elsewhere in Asia should contribute to earnings over the medium term.

Round One Corp. (4680) (4680 JT), a bowling-alley operator, surged 17 percent to 683 yen, the biggest gain since November 2001. Mitsubishi UFJ Morgan Stanley Securities Co. increased its stock price estimate for Round One to 1,100 yen from 620 yen, maintaining an “outperform” rating. A recovery in same-store sales will probably bring double-digit operating profit growth for a third consecutive fiscal year, Mitsubishi UFJ said in a Japanese-language report dated yesterday.

Sony Corp. (6758) (6758 JT), a consumer electronics maker, gained 3 percent to 2,117 yen. JPMorgan Chase & Co. maintained its “overweight” rating, saying Sony’s targeted operating profit margin of 5.2 percent will likely be achieved in fiscal 2012 when the impact from the earthquake will fade. Meeting that profit margin target would be “a key for the stock to rebound,” JPMorgan said in a Japanese-language report dated today.

Universe Co. (3078 JT) soared 21 percent to 1,498 yen, the steepest rise since its April 2007 listing. Arcs Co. (9948 JT), an operator of supermarkets and discount stores, will acquire the supermarket chain in a stock transaction on Oct. 21. Shareholders will receive 1.205 Arcs shares for each share in Universe, which will be delisted from the Tokyo Stock Exchange on Oct. 18, according to a joint statement. Arcs gained 2.4 percent to 1,262 yen.

To contact the reporter on this story: Norie Kuboyama in Tokyo at nkuboyama@bloomberg.net.

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.

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