(Updates with closing share price in second paragraph.)
June 8 (Bloomberg) -- Kawasaki Kisen Kaisha Ltd., Japan’s third-largest shipping line, rose the most in a week in Tokyo after Mitsubishi UFJ Morgan Stanley Securities Co. raised its stock rating on prospects for a rebound in shipping demand.
Kawasaki Kisen gained 1.2 percent to 264 yen at the 3 p.m. close of trading on the Tokyo Stock Exchange. Mitsubishi UFJ increased its rating on the Tokyo-based company to “outperform” from “neutral.”
Carmakers including Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. are among Japanese exporters that have raced to restore output after Japan’s March 11 earthquake, raising prospects for a rebound in demand for exports of cars and manufactured goods. Toyota, which had the biggest drop in Japanese production in 35 years in April, predicts output will increase this month and return to normal levels as early as November.
“The rebound in Japanese production is faster than we had expected,” Ryota Himeno, an analyst at Mitsubishi UFJ Morgan Stanley Securities, wrote in a report. “After a very tough April and May we see upside for the business environment.”
Japanese vehicle exports tumbled 68 percent in April, the most since at least 1990, according to figures from the Japan Automobile Manufacturers Association compiled by Bloomberg.
Himeno maintained his stock rating on Nippon Yusen K.K. at “outperform” and of Mitsui O.S.K. Lines Ltd. at “neutral.”
--Editors: Nicholas Wadhams, Garry Smith
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