Japan Stocks: Japan Drilling, JGC, Komatsu, Olympus, Sanrio

Japan’s Nikkei 225 (NKY) Stock Average fell 82.10, or 0.8 percent, to 10,050.01 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.

Exporters: Sony Corp. (6758) (6758 JT), Olympus Corp. (7733) (7733 JT) and other exporters retreated as U.S. lawmakers failed to agree on raising the federal debt ceiling, increasing the risk of a default that could threaten the global economic recovery.

Sony, a consumer electronics exporter that earns about a half of its revenue from the U.S. and Europe, sank 2.2 percent to 2,054 yen. Olympus, a maker of optoelectronic products that gets more than 20 percent of its sales from the U.S., sank 1.8 percent to 2,711 yen. Toyota Motor Corp. (7203) (7203 JT), which gets almost 30 percent of its revenue in North America, lost 1.4 percent to 3,290 yen. Nissan Motor Co. (7201 JT), a carmaker that gets almost 80 percent of its revenue overseas, slid 1.2 percent to 851 yen.

Banks holding U.S. bonds also declined. Mitsubishi UFJ Financial Group Inc. (8306) (8306 JT), Japan’s No. 1 publicly traded lender, retreated 2 percent to 399 yen and Sumitomo Mitsui Financial Group Inc. (8316) (8316 JT), No. 2, declined 1.3 percent to 2,497 yen.

Daiichi Kigenso Kagaku-Kogyo Co. (4082 JT), a maker of zirconium compounds, plunged 10 percent to 3,450 yen. The company said net income plunged 57 percent to 289 million yen in the quarter ended June 20 as an increase in rare earth prices boosted its raw materials costs. Ichiyoshi Securities Co. lowered its equity rating on Daiichi Kigenso to “neutral” from “buy.”

Japan Drilling Co. (1606 JT), an offshore drilling contractor, jumped 5.7 percent to 3,170 yen, while JGC Corp. (1963) (1963 JT), a plant builder, rose 1.6 percent to 2,488 yen after the Nikkei newspaper reported the government will test a procedure for extracting natural gas from undersea resources called methane hydrate.

Kato Works Co. (6390 JT), a maker of construction and industrial machinery, soared 8 percent to 256 yen, the highest since November 2008. The company forecast net income will rise 33 percent to 1.7 billion yen this fiscal year, due to recovering crane orders in Japan.

Komatsu Ltd. (6301) (6301 JT), a construction machinery maker, slumped 3.1 percent to 2,461 yen, while Kubota Corp. (6326) (6326 JT), a tractor maker, and Hitachi Construction Machinery Co. (6305 JT) both slumped 1.5 percent after Caterpillar Inc. (CAT US), the world’s largest maker of construction and mining equipment, said second-quarter earnings missed analyst estimates. Japan’s earthquake and tsunami reduced sales and demand slowed in China, Caterpillar said.

Macnica Inc. (7631) (7631 JT), a distributor of semiconductors and electronic components, climbed 4.5 percent to 1,885 yen after saying net income rose 13 percent to 883 million yen in the quarter ended June 30 as Japan’s shift to digital broadcasting boosted demand for consumer electronics.

Nidec Sankyo Corp. (7757) (7757 JT), a maker of electronic components, slumped 4.6 percent to 544 yen. The company said net income fell 28 percent to 1.19 billion yen in the quarter ended June 30.

Nissin Electric Co. (6641 JT), a maker of equipment for electrical substations, advanced 5.1 percent to 788 yen, its highest since July 1996. The company said net income in the quarter ended June 30 jumped to 640 million yen from 150 million yen a year earlier, on higher sales and lower costs.

Sanrio Co. (8136 JT), the maker of Hello Kitty character goods, soared 8.8 percent to 3,265 yen. Sanrio’s April-June current profit, or pretax profit from operations, probably rose 48 percent to about 4 billion yen due to higher royalty revenue in the U.S. and Europe, the Nikkei newspaper reported on July 23.

Yahoo Japan Corp. (4689) (4689 JT), the operator of Japan’s most- visited Internet portal, declined 3.7 percent to 28,000 yen. Ichiyoshi Securities Co. cut the investment rating on the company to “neutral” from “buy.”

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