Nikkei in Japan at 4-month High; Banks in Focus

Marcus Jacob
10 Nov, 2010
New York City

Stocks in Japan traded higher on the rise in banks, exporters and resource companies. World leaders are increasingly at odds in how to solve the growing financial flows imbalance and are not expected find common ground at G20 meeting.

[R]5:00 PM Tokyo – Stocks in Japan traded higher on the rise in banks, exporters and resource companies. World leaders are increasingly at odds in how to solve the growing financial flows imbalance and are not expected find common ground at G20 meeting.[/R]

Stocks in Japan hovered near their recent gains and perked up to the highs last seen in late June as G20 nations meet in Seoul, South Korea.

World markets are increasingly facing the uncertain future about the direction of the dollar and commodities prices and inflation in emerging markets. G20 leaders are not expected to find a common ground on how to resolve the fundamental differences related to capital flows.

Exporting nations like Germany, China and Japan are increasingly vocal against the U.S. Federal Reserve plan to stimulate the economy and on the lower dollar. Weak dollar is expected to lift U.S. exports that may pose a competition to other exporting nations.

Banks traded higher on the media speculation that domestic banks may be exempt from the tougher international banking capital requirements.

Finance Ministry in Tokyo reported total national debt increased to 908.86 trillion yen at the end of the fiscal second quarter in September, an increase of 4.78 trillion yen from the June quarter.

Nikkei 225 Stock Average increased 1.4% to 9,830.52 and the Topix increased 1.6% to 852.98. Exporters, banks and resource stocks were among the most active in trading.

The yen declined to 81.72 against one dollar and to 112.80 against one euro.

Canon Inc added 3% to 3,994 yen and Sony Corp inched higher 1.3% to 2,747 yen. Olympus, Fuji and Panasonic traded higher as well.

Toyota Motor Corp 2.2% to 3,045 yen and Nissan Motor Co increased 1.9% to 790 yen. Mitsubishi and Honda closed up.

Resources and commodities linked stocks closed higher as well tracking gains in commodities prices in international markets.

Mitsui & Co increased 1% to 1,350 yen and Mitsubishi Corp added 1.8% to 2,125 yen. Marubeni also edged up.

Mizuho Financial Group Inc soared 7.5% to 126 yen, Sumitomo Mitsubishi Group Inc surged 6% to 2,511 yen and Mitsubishi UFJ gained 4.2% to 393 yen.