Nikkei in Japan Reverse Earlier Losses; FujiFilm Buys Merck Bio-drug Makers

Nigel Thomas
28 Feb, 2011
New York City

Stocks in Japan closed higher after reversing earlier losses as the yen strengthened and crude oil advanced. The benchmark index Nikkei gained 3.8% in the month. FujiFilm Holdings agreed to acquire bio-drug makers from Merck.

[R]4:00 Tokyo – Stocks in Japan closed higher after reversing earlier losses as the yen strengthened and crude oil advanced. The benchmark index Nikkei gained 3.8% in the month. FujiFilm Holdings agreed to acquire bio-drug makers from Merck.[/R]

Stocks in Japan closed higher after reversing earlier losses. Asian markets rebounded from earlier losses after media reports suggested that rebel held territories in Libya permitted the shipment of oil.

The continued instability in Libya pushed crude oil higher in Asia trading but the yen firmed.

The Nikkei 225 Stock Average increased 0.9% to 10,624.09 and the broader Topix index gained 1% to 951.27. The Nikkei index added 3.8% in the month, the largest monthly gain in three months.

The yen closed at 81.27 to a dollar and crude oil trade in Asia at $96.45 a barrel.

Stock Movers

Export sensitive stocks closed higher. Sony increased 0.9% to 2,993 yen and Toyota Motor added 1.7% to 3,820 yen.

Fanuc Corp added 3.8% to 12,680 yen and Nippon Sheet increased 3% to 233 yen on a rating upgrade from Deutsche Bank.

FujiFilm Holdings Corp declined as much as 1.4% and said it agreed to acquire two makers of bio drugs from Merck & Company. The company acquired all equity interests in UK based MSD Biologics and Diosynth RTP Inc based in North Carolina, U.S. A. that were valued at less than $500 million by analysts.

Mizuho Financial Group Inc controlled companies closed higher on a report that the company is planning to make its three publicly traded companies wholly owned subsidiaries and acquire them at $3.8 billion to $4.2 billion.

Mizuho spokesperson in Tokyo declined to comment.

Mizuho Securities soared 12% to 251 yen and Mizuho Trust & Banking Co. increased 6% to 89 yen and Mizuho Financial added 1.8% to 1698 yen.

Shinsei Bank Ltd declined as much as 100 yen on a speculation that the company plans to raise capital in the near future.

Softbank advanced in trading on the expectation of higher than expected earnings in the current quarter.