Report
Joel Scheiman ...
  • Julie Boote
  • Thao Nguyen

PSA Today Mar 2: US steel tariff proposals, stronger yen damage markets/ Blast furnace shares fall, arc up/Auto sector under pressure/Kakaku's successful tabelog sign-ups - Nikkei -2.50%

Japan Market Comment by Julie Boote, Joel Scheiman and Thao Nguyen
Nikkei ¥21,181.64 (-¥542.83 / -2.50%); Topix ¥1,708.34 (-¥31.86 / -1.83%); ¥/$105.85
Tags: Nippon Steel & Sumitomo Metal Corp (5401 JP), JFE Holdings (5411 JP), Kobe Steel (5406 JP), Nisshin Steel (5413 JP), Yamato Kogyo (5444 JP), Olympus (7733 JP), Hoya (7741 JP), Chugai Pharma (4519 JP), Tokai Carbon (5301 JP), Sumco (3436 JP), Isuzu Motors (7202 JP), Toyota (7203 JP), Honda (7267 JP), Subaru (7270 JP), Nissan (7201 JP), Kakaku.com (2371 JP),

Main Points at a Glance
• Wall Street declines, US policy and a stronger yen affect Japan’s markets
• Blast furnace shares hit by US tariff proposal
• Auto sector under pressure as steel import tariffs loom
• Kakaku.com: 20,000 restaurants have signed up for the new pricing plans
Underlyings
Chugai Pharmaceutical Co. Ltd.

Chugai Pharmaceutical is a pharmaceutical company. Along with its subsidiaries, Co. is engaged in the research and development of new prescription medicines and the subsequent manufacturing, marketing and distribution activities. Co. sells its pharmaceutical products to the nationwide appointed stores in Japan, as well as in overseas, such as Germany, the U.K., France, Taiwan, China, South Korea and the U.S. Co., through its subsidiaries, is also involved in the management of research facilities, and the research on drug discovery, as well as the provision of literature research services for pharmaceutical information, and pharmaceutical academic information.

HOYA CORPORATION

HOYA and its affiliates are mainly engaged in the manufacture and sale of electronics-related products, imaging products, health care products and medical products. Co.'s principal products are photomasks/maskblanks for semiconductors, photomasks/maskblanks and devices for liquid crystal displays ("LCDs"), glass disks for hard disk drives ("HDDs"), optical lenses/glasses, and electro optical glasses; eyeglass lenses, eyeglass frames, contact lenses and accessories, intraocular lenses, endoscopes, bone prosthesis, and medical accessories; cameras, interchangeable lenses, digital camera modules, micro lenses, and CCTV lenses; and crystal glass products.

Isuzu Motors Limited

Isuzu Motors is engaged in the manufacture and sale of automobiles. Co. manufactures heavy/medium/light-duty trucks, buses, passenger vehicle engines and industrial-use diesel engines. Co.'s principal products include commercial vehicles including light, medium and heavy-duty trucks and buses; passenger cars including sport utility vehicles and pickup trucks under the name of "Isuzu D-MAX," "Isuzu mu-X" and "Panther;" diesel engines for construction machinery, freezer units and generators; diesel engines for passenger vehicles; and marine engines for commercial boats. In addition, Co.'s subsidiary provides commercial vehicle leasing and maintenance services.

JFE Holdings Inc.

JFE Holdings is a holding company. Co.'s principal business segments are steel, engineering, and trading. Co., through its subsidiaries and associated companies, is engaged in the manufacture and sale of steel products including sheets, plates, shapes, pipes and tubes, stainless and specialty steels, electrical steels, bars and wire rods, and iron powders; and the provision of engineering services in such fields as energy industries, environmental industries, and water and waste water facilities; as well as the domestic and overseas trading including both importing and exporting, mainly steel products, but also raw materials for steel, non-ferrous metals, chemicals, machinery and ships.

Kobe Steel Ltd.

Kobe Steel is a steel manufacturer as well as a supplier of aluminum and copper products. Co.'s products include steel plates, seamless steel pipes, titanium, titanium alloys, cast and forged steel products, specialty steels, welding materials, metal rolling products, copper rolling products, aluminum alloys, magnesium alloys, chemical machinery, nuclear related machinery, civil engineering, oil pressure shovels, mini shovels, cranes, electric shovels, electronic-related equipment, information and communication systems, semiconductor related products and special alloy materials. In addition, Co. is engaged in the real estate business.

NIPPON STEEL CORP.

Nippon Steel & Sumitomo Metal and its affiliates are mainly engaged in the manufacture and sale of steel products, chemicals and nonferrous metals. Co. is also involved in the engineering and construction works; the manufacture and sale of semiconductor components and materials, electronic components and materials, metal-processed products, and ceramic components and materials; the manufacture and sale of chemicals products, coke and coal tar chemicals products and electronic materials; and the provision of engineering and consulting services pertaining to computer systems.

Nisshin Steel Co. Ltd.

Nisshin Steel is an integrated steel manufacturing group based in Japan. Along with its affiliates, Co. is engaged in the manufacture, processing and sale of steel and non-ferrous metals. Co. is also engaged in the manufacture of light-gauge materials including surface-treated and stainless steel products. Co. offers a broad range of steel products including coated steel, such as galvanized, aluminized, and copper-plated steel sheet and strip; stainless steel sheet and strip; hot- and cold-rolled ordinary steel sheet and strip; and special steel. Principal users of Co.'s products include the automotive, household, and industrial electrical appliance and construction industries.

Olympus Corp.

Olympus is a manufacturing company. Co. operates in four business segments. The Medical segment is engaged in the manufacture and sale of gastrointestinal endoscopes, surgical devices and peripheral devices for endoscopic surgery, endoscopic devices, and ultrasonic endoscopes. The Scientific Solutions segment is engaged in the manufacture and sale of biological microscopes, industrial microscopes and endoscopes, and non-destructive testing equipment. The Imaging segment is engaged in the manufacture and sale of digital cameras, IC recorders, and binoculars. The Others segment is engaged in the provision of bio-materials, system development and others.

SUMCO Corporation

SUMCO is a manufacturing company that is mainly engaged in the high-purity silicon business. Along with its subsidiaries, Co. is involved in the manufacture and sale of various silicon wafers for semiconductors, including polished wafers, epitaxial wafers and special wafers; the production and sale of wafers; and the provision of technical and sales marketing support services in overseas markets, including the U.S., the U.K., Indonesia, Singapore, Taiwan and South Korea. In addition, Co., through its subsidiaries, is engaged in the finance and personnel services in the U.S.

Tokai Carbon Co. Ltd.

Tokai Carbon is engaged in the manufacturing and sale of carbon products and graphite electrodes. The Carbon Black segment manufactures and sells rubber products use, black color use, conductive carbon black products. The Graphite Electrode segment is engaged in the manufacture and sale of graphite electrode for electric steelmaking furnace. The Fine Carbon segment manufactures and sells fine carbon and electric brushes, among others. The Industrial Furnace and Related Products segment is engaged in the manufacture and sale of industrial electric furnaces, gas furnaces, silicon carbide heating elements, ceramic resistors, among others.

Yamato Holdings Co. Ltd.

Yamato Holdings is a holding company. Co., through its subsidiaries and associated companies, operates in seven business segments: delivery, BIZ-logistics, home convenience, e-business, financial, autoworks, and others. "TA-Q-BIN" (a special home delivery system for small parcels) services is the Co.'s core business. Co. is engaged in the provision of small-parcel delivery services including "TA-Q-BIN," "Cool TA-Q-BIN," "TA-Q-BIN Time Service," "Worldwide Delivery Service," "Golf, Sky & Airport Round Trip TA-Q-BIN," "Super-Speed TA-Q-BIN," and "Kuroneko DM-Bin" (posting service); as well as intercompany logistics services, and moving and household effects delivery services.

Provider
Pelham Smithers Associates Ltd
Pelham Smithers Associates Ltd

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

PSA produces both company and sector reports. The focus of PSA’s research is to identify winners and losers as new technologies impact the top and bottom lines of corporations. Critical to our research is the clear explanation of how these new technologies work and how they impact companies and industries. 

The founding partners have worked closely together for twenty years and the team has more than doubled in size since 2012. 

Analysts
Joel Scheiman

Julie Boote

Thao Nguyen

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