Japan Stocks: Developers, Daikin, Dentsu, Kajima, Seven & I

Japan’s Nikkei 225 (NKY) Stock Average rose 99.20, or 1 percent, to 10,170.34 at the 11 a.m. trading break in Tokyo. The following are among the most active shares in the Japanese market today. Stock symbols are in parentheses after company names.

Construction companies: Deutsche Bank AG raised its sector rating on Japanese builders to “overweight” from “market weight,” saying that construction investment may rise at a double-digit pace this fiscal year, helped by reconstruction demand from the March earthquake disaster and stronger capital spending by businesses.

Kajima Corp. (1812) (1812 JT), Japan’s biggest general contractor by revenue, advanced 2.1 percent to 243 yen. Deutsche Bank increased its rating on the company to “buy” from “hold.” Shimizu Corp. (1803) (1803 JT), the second-largest builder, gained 2.1 percent to 344 yen. Taisei Corp. (1801) (1801 JT), the No. 3, climbed 2.7 percent to 191 yen.

Developers: Bank of America Merrill Lynch raised its share price estimates for Mitsubishi Estate Co. (8802 JT), Mitsui Fudosan Co. (8801 JT) and Sumitomo Realty & Development Co. (8830 JT), saying that large-scale real-estate transactions have resumed and that demand for office space is improving.

Mitsubishi Estate, the country’s second-largest developer by revenue, also got a boost after the Nikkei said the company plans to spend as much as 200 billion yen to build three skyscrapers in Tokyo.

Mitsubishi Estate climbed 3.1 percent to 1,504 yen. Mitsui Fudosan, Japan’s largest developer, rose 1.9 percent to 1,481 yen. Sumitomo Realty, the No. 3, increased 1.3 percent to 1,928 yen.

Daikin Industries Ltd. (6367) (6367 JT), a maker of air conditioners, advanced 2.7 percent to 2,926 yen. The company will buy Airfel shares from Sanko Holding for about 20 billion yen ($246 million), the Nikkei newspaper said without citing anyone. Airfel is Turkey’s second biggest air conditioner maker, according to the report.

Dentsu Inc. (4324) (4324 JT), Japan’s largest advertising company, rose 3.6 percent to 2,445 yen. Declines in monthly revenue slowed in June, the company said in a statement to the Tokyo Stock Exchange. Sales fell 5 percent last month on a parent basis, compared with drops of 12 percent in May and 6.4 percent in April.

Other advertising firms also gained. Hakuhodo DY Holdings Inc. (2433) (2433 JT), the second-biggest, climbed 3 percent to 4,455 yen. Asatsu-DK Inc. (9747) (9747 JT), the No. 3, jumped 4.6 percent to 2,254 yen.

Hitachi Kokusai Electric Inc. (6756) (6756 JT), a maker of chip- manufacturing equipment, fell 2.4 percent to 645 yen. The company had its rating cut to “neutral” from “outperform” at Credit Suisse Group AG.

Nissha Printing Co. (7915 JT), a maker of film for screens used in mobile phones, leapt 5.3 percent to 1,567 yen. The company was raised to “neutral” from “underperform” at Credit Suisse Group AG.

Round One Corp. (4680) (4680 JT), a operator of bowling-alleys and amusement facilities, increased 1.8 percent to 695 yen, set for the highest close since May 2010. The company said sales at 105 stores open for at least 12 months increased 5.8 percent in June from a year earlier.

Seven & I Holdings Co. (3382 JT), Japan’s biggest retailer, gained 1.9 percent to 2,260 yen. The company raised its forecast for full-year net income 20 percent to 105 billion yen, citing a quicker-than-expected recovery at stores hurt by the March 11 earthquake.

Toyota Motor Corp. (7203) (7203 JT), the world’s largest carmaker, rallied 1.9 percent to 3,465 yen. The company will invest 125 million euros ($180 million) to make its new Yaris III compact car at Valenciennes, France, La Tribune reported, citing an interview with Didier Leroy, chief executive officer of Toyota Motor Europe.

To contact the reporter on this story: Akiko Ikeda in Tokyo at iakiko@bloomberg.net.

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

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