Canon focuses on record figures

PHOTOGRAPHIC and office equipment maker Canon says it is on track for a record annual profit of 263 billion yen (£1.49 billion).

It has been busy, launching 11 new colour copiers, printers and digital cameras, sparking growing demand at home and abroad, and investors are set to reap the benefits with a dividend forecast of 30 yen, up 5 yen on last year.

Canon also overcame its October warning that the strong yen could weigh on its profit once US dollar earnings were repatriated.

The results would put Canon near the top of the Japan's corporate tree, behind only Toyota, NTT, NTT DoCoMo, Nissan and Honda but way in front of other technology firms such as Sony, which estimates a 50 billion yen net profit.

Canon's shares responded accordingly, trading up 1% at 4850 yen. That rise was against a strong market backdrop after the Bank of Japan's quarterly Tankan survey of business confidence set the scene. The key figure of plus 11 in December, from plus one in September, was the best result since June 1997.

The Nikkei 225 Average accelerated 94.52 points, or 0.9%, to 10,169.66.

Camera and electronics group Nikon rose 6.87% to 1384 yen, in line with other exporters buoyed by the rise in the Dow past the 10,000 barrier yesterday, on hopes that the US recovery is firmly established. One loser, however, was internet business backer Softbank, which fell 5.24% to 99,500 yen after saying it would raise up to 230 billion yen in a new share issue. It suffered a record net loss of 77 billion yen in the April to September half-year and will use any funds raised to repay debt.

In Hong Kong, investors were also encouraged by Wall Street with the Hang Seng up 96.77 points, or 0.8%, at 12,651.35.

Ports-to-telecoms conglomerate Hutchison Whampoa continued to rise in anticipation of its 3G rollout in Hong Kong. It rose almost 6% yesterday and today was up a further 0.88% at HK$57.50.

Market newcomer Chia Hsin Cement Greater China was welcomed with a 49% premium to its offer price, up to HK$2.20 as the Asian love affair with new China issues continued.

Singapore shares were firmer with technology stocks, which have had a mixed week, performing better. The Straits Times index was up 7.98 points at 1728.17, a rise of 0.5%.

Creative Technology, which makes computer peripherals, rose 1.13% to S$17.90 while Chartered Semiconductor was up 1.27% at S$1.60. Banks were boosted by Wall Street's strength and receding prospects of higher interest rates. DBS traded up 0.69% at S$14.60.

In Sydney, stocks rose again on the back of the good news from the US. The All Ordinaries index rose 22.6 points to 3216.3, a 0.7% gain. News Corp was up 1.7% at A$11.67 and all the lenders rose. Westpac was up 0.7% at A$15.57, National Australia Bank added 0.23% to A$29.97 and ANZ, the sector leader, gained 1.23% to A$17.31.

Mining firms, most of which declare earnings in US dollars, faced more uncertainty over the continued rise of the Aussie dollar. BHP Billiton lost 0.69% to A$11.46 and Rio Tinto, which gave up earlier gains, edged down 0.45% to A$35.50. They have had a roller-coaster ride in recent days as investors balance good prospects for global growth against currency concerns.

Oil Search managed to tip that balance to positive with the announcement of another gas sales agreement. It rose 6.19% to A$1.03.