Nikkei Index in Japan Surges 1.9%

Chandrasekhar Atreya
14 Oct, 2010
New York City

Stocks in Japan surged for the first time in four days tracking a rally in overseas markets and the yen continued to rise. Tobacco shipments soar in September ahead of effective tax increase on November 1.

[R]5:00 PM Tokyo, Japan – Stocks in Japan surged for the first time in four days tracking a rally in overseas markets and the yen continued to rise. Tobacco shipments soar in September ahead of effective tax increase on November 1.[/R]

The benchmark index in Tokyo trading closed higher after a three-day decline as markets in Europe and New York traded higher. The euro edged to a six months high and the yen traded at a new 15-year high.

The Nikkei 225 Stock Average gained 1.91% or 180 points to close at 9,583.51, after crossing 9,600 points intraday.

The yen further advanced against the dollar today hitting its highest against the greenback since April 1995 and topping the 81.37 level it reached in overseas trading on Monday.

The yen strengthened to 81.23 against the dollar early Thursday.

The Japanese government wants Google to remove the Chinese name from the disputed islands on its map.

Foreign Minister Seiji Maehara said today the government will ask Google Inc to delete the Chinese name from the disputed islands Japan calls as Senkaku on the company’s Google Maps Web mapping service.

Mitsubishi Motor Corp president Osamu Masuko said today the company will start mass producing electric vehicles for corporate customers by the end of 2011 to broaden its customer base for zero-emission cars.

He said that the company is targeting annual sales of 10,000 commercial use electric vehicles as early as possible.

The corporate goods price index for September fell 0.1% from a year earlier to 102.8, the Bank of Japan said Thursday.

The number of new condominiums for sale in Tokyo and its three neighboring prefectures rose 3.9% from a year earlier in September to 3,183, the eighth monthly increase in a row, Real Estate Economic Institute Co said Thursday.

Purchase contacts were signed for 74.9% of the condos, up 1%.

Japan Freight Railway Co reported on Wednesday a 42.2% jump in shipments of tobacco in September from a year earlier, citing hoarding by consumers ahead of the October 1 tobacco tax hike.

The shipments in the first week of October plunged 77% on the year.

Prime Minister Naoto Kan’s comments Wednesday suggesting China and South Korea should stop preventing their currencies from appreciating was directed at emerging nations, a top government spokesman said.

“Kan was speaking from the standpoint that he hopes emerging nations with massive trade surpluses improve exchange rate flexibility,” Chief Cabinet Secretary Yoshito Sengoku told reporters in Tokyo today.

Gainers & Losers

Yahoo Japan Corp led gainers in the Nikkei with a gain of 6.36% to 30,600 yen followed by J Front Retailing 5.97% to 426 yen, Nomura Holdings 5.57% to 455 yen, JX Holdings 5.19% to 486 yen, Pac Metals Co 5.12% to 719 yen and Alps Electric Co 4.93% to 745 yen.

Sapporo Holdings led decliners in the index with a drop of 4.67% to 347 yen followed by Yokogawa Electric 4.34% to 573 yen, Shinsei Bank Ltd 2.67% to 73 yen, Fuji Electric Holdings 2.53% to 193 yen, Fuji Heavy Industries 2.04% to 529 yen and Hino Motors Ltd 1.84% to 374 yen.