Stocks in Japan Rise on China Optimism

Chandrasekhar Atreya
13 Sep, 2010
New York City

Stocks in Japan gained for the third trading day in a row after China reported better than expected economic data. Japan launched global positioning satellite. Incubator Bank of Japan resumes operations at select branches. Tepco plans to invest in Japan Nuclear Fuel to recycle spent fuel.

[R]5:00 PM Tokyo, Japan – Stocks in Japan gained for the third trading day in a row after China reported better than expected economic data. Japan launched global positioning satellite. Incubator Bank of Japan resumes operations at select branches. Tepco plans to invest in Japan Nuclear Fuel to recycle spent fuel.[/R]

Japanese stocks traded higher for the third day in a row after China reported better than expected economic data over the weekend.

The Nikkei 225 Stock Average gained 0.89% or 82.65 to close at 9,321.82. The broader Topix also gained 0.5% to close at 837.65.

Of the stocks in Nikkei 225 Stock Average, 162 gained, 44 declined and 19 were unchanged.

Financial Services Agency said today that banks in Japan will be able to meet the new capital adequacy rules known as Basel III. The Basel Committee on Banking Supervision on Sunday agreed to set a new minimum ratio of core Tier I capital at 4.5% of assets, more than double the current 2% plus a new buffer equivalent to an additional 2.5%.

The Japan Aerospace Exploration Agency and Mitsubishi Heavy Industries Ltd Saturday announced that it launched Michibiki, a quasi-zenith satellite that will transmit positioning signals.

An H-IIA rocket carrying Michibiki was launched at 8:17 p.m. from Tanegashima Space Center in Kagoshima Prefecture. The satellite successfully separated from the rocket 28 minutes later. Signals from the satellite are expected to complement data from Global Positioning System satellites operated by the U.S. Defense Department, allowing more accurate positioning for example in areas where skyscrapers impede GPS signals.

Incubator Bank of Japan, which was declared insolvent on Friday, will resume operations Monday at 16 of its 114 branches, following a three day business suspension ordered by the Financial Services Agency.

Depositors will be able to apply for refund from their accounts up to the insured limit of 10 million yen in deposits plus interest.

Most of Incubator Bank’s depositors will be able to get back all their money, despite the Financial Services Agency’s decision to impose a cap on deposit insurance.

The failed bank held 585.9 billion yen in deposits as of the end of August with the number of depositors numbering 113,000 or so. Only 3,560 of those accounts held more than 10 million yen at that time.

China said Saturday it has decided to postpone talks with Japan aimed at signing a treaty over joint gas field development in the East China Sea in protest over Tokyo’s handling of a Chinese fishing boat hitting two Japanese patrol ships near the disputed Senkaku Islands.

Tokyo Electric Power Co said Friday it will inject another 130.4 billion yen into Japan Nuclear Fuel Ltd to help the company bring online its problematic nuclear reprocessing plant, increasing its stake to 28.6% from the current 20.6%.

“The recycling of spent nuclear fuel is an important issue, with utilities all adopting a forward-looking stance to further investments in Japan Nuclear Fuel,” Tepco President Masataka Shimizu told reporters Friday.

More than 70% of the 26 domestic airports managed by Japanese government incurred pretax losses in financial year 2007, according to figures released Friday by the Transport Ministry.

The losses were primarily the result of declining landing fee revenue at airports because of smaller planes being used by carriers. And, seven airports reported larger losses.

Tokyo Grain Exchange Ltd decided Friday to sell its main seven storey building to Mitsubishi Estate Co for 3.3 billion yen including the land. The bourse and existing tenants will move out by the end of March 2011.

Kataoka & Co is set to open a Daylesford Organic restaurant in Japan. The food importer concluded a franchise deal with U.K.-based Daylesford Organic Ltd and set up Daylesford Organic Japan Co, which will manage the company’s outlets in Japan.

The first restaurant will open in Tokyo’s Aoyama district, near Omotesando Station on November 11.

Osaka-based kidswear co Miki Shoko Co will expand its presence in the U.S. and South American markets by opening around 30 directly run shops in department stores and other locations.

The company known for its Miki House brand is now looking around for global growth and is targeting sales of 3 billion yen over the next 10 years from the current 50 million yen or so.

Gainers & Losers

Nippon Soda Co led the gainers in the Nikkei 225 with a gain of 5.92% to 304 yen followed by Meidensha Corp 5.25% to 321 yen and GS Yuasa Corp 5.1% to 598 yen.

Nippon Express led the decliners in the index with a loss of 2.12% to 323 yen followed by Asahi Kasei Corp 1.11% to 446 yen and Mizuho Securities 1.01% to 196 yen.