Nikkei Index Nears 10-month High; GS Yuasa Rises; Yamaha Plunges

Nigel Thomas
15 Feb, 2011
New York City

Stocks in Japan traded higher as on earnings optimism and shifting fund flows to the developed markets. GS Yuasa rose after it lifted its earnings outlook but Yamaha plunged 11% after it estimated lower than expected earnings.

[R]5:00 PM Tokyo – Stocks in Japan traded higher as on earnings optimism and shifting fund flows to the developed markets. GS Yuasa rose after it lifted its earnings outlook but Yamaha plunged 11% after it estimated lower than expected earnings.[/R]

Stocks in Japan closed higher and the benchmark index Nikkei rose to a 10-month high as foreign investors shift investments to Japan and other developing markets and corporate earnings are ahead of expectations.

Nikkei 225 Stock Average increased 21.13 to 10,746.67 and the broader Topix index added 3.38 or 0.35% to 962.57. Trading volume declined slightly to 2.03 billion shares from 2.07 billion in Monday’s trading.

The Bank of Japan left its key interest rate range between zero and 0.1% and left its asset buying program unchanged at 5 trillion yen or $60 billion.

The decision to leave the rates and bond program unchanged was unanimous.

The central bank also lifted its economic assessment for the first time in nine months as exports rose in the last two months of December and the yen hovered near high against the euro and the dollar.

Governor of the Bank of Japan, Masaaki Shirakawa said while reporting to a question that rising commodities prices are likely to have less impact on the local prices as the yen is higher than 2008.

Stock Movers

GS Yuasa rose 5.4% to 620 yen after the batteries maker raised full-year earnings and dividend outlook.

Olympus declined 3.6% or 92 yen to 2,478 yen.

Softbank Corp gained 3.4% to 3,160 yen on the company plan to develop a next generation standard rivaling NTT DoCoMo Inc in a partnership with Bharti Airtel, China Mobile and Vodafone Group.

Yamaha Motors dropped 11% to 1,525 yen after the motorcycle maker estimated lower than expected 2011 earnings.

Stocks linked to China economy closed higher after China reported lower than expected inflation of 4.9% in January.

Komatsu added 1.1% to 2,595 yen and Hitachi Construction Machinery added 0.8% to 2,063 yen.