Nissan Motor Corp and Indian truck manufacturer Ashok Leyland jointly announced today the companies had signed three joint venture companies agreement to manufacture light commercial vehicles.

The Vehicle Manufacturing Company will be located in India and be 51% owned by Ashok Leyland and production volume is expected to be 100,000 units starting 2010. Power Manufacturing Company, owned 51% by Nisaan, will be responsible for assembly and export of engines and other drive-train components for trucks. Technology Development Company would be responsible for the development of LCV products and related power-trains.

Separately Nissan surged 12% after reporting better than expected earnings on Friday. Sales in emerging markets, China and Russia helped the performance. The company reported 13% increase in operating profit and 12% in sales in the second quarter of the fiscal 2008. The company also announced stock buyback of 27 billion before the calendar year end 2008.

Softbank announced yesterday that it would spend 40 billion yen on a data centre in Southwestern Japan in Kitakyushi, Fukuoka Prefecture in October 2008. Two additional facilities, each with a floor space of 3,300 square metres will also be built by 2009.The data centre will house more than 100,000 computer servers and have an area of 140,220 square meters.

Financial stocks also gained on improved investor sentiment after U.S. brokerage Countrywide Financial Corp announced that it would recover from the credit market turmoil and expectations that the U.S. Federal Reserve might cut its key interest rate this week Mitsubishi UFJ Corp rose 4.70% and Mizuho Financial Group jumped 5.62%.

Nippon Yusen soared 8.4% to 1,251 yen after announcing today it expects net income for the full year ending March 31 to be 111 billion yen compared to 100 billion yen forecasted earlier, on rising demand of ore and bulk commodities transportation, especially to China. Operating profits in the second quarter rose 54% to 26.3 billion from 17.1 billion yen. Sales in the quarter also soared to 655.3 billion from 528.8 billion a year earlier.

Other shipbuilders gained as well. Kawasaki Heavy Industries and Mitsui Engineering & Shipbuilding firmed 1.95% and 3.95 correspondingly.

Advantest Corp led decliners in the Nikkei 225 index with a plunge of 6.65%, followed by losses of 4.17% in Matsushita Electric Work, 3.32% in Clarion Company Limited, 3.29% in Fast Retailing, and 2.39% in Trend Micro Inc.

Advantest Corp slipped after reporting first half net income fell 16.9 billion yen compared to 22.2 billion yen a year earlier. Sales were at 114.9 billion yen from 120 billion yen in 2006. Fiscal year net income was revised downwards from 35.6 billion yen to 33 billion yen and sales projections were cut from 235 billion yen to 230 billion yen.

Toshiba Corporation announced today first half operating income rose 17.3 billion yen from a year ago to 82.5 billion yen, while sales stood at 3.6 trillion yen First half net income rose 6.9 billion from a year earlier to 45.7 billion yen. However, the company projected annual profit will climb by 50% on increased demand for semiconductors in music players and digital cameras. Net income is forecasted to rise 31% to 180 billion yen, while annual sales might firm 9.6% to 7.8 million yen. Operating profit for the year will probably rise to 290 billion yen.

Toshiba added that full year profit at the chip business may rise to 150 billion, notwithstanding the anticipated 20% decline in NAND flash chip prices in the second half due to increased production and cost cutting measures being implemented.