Nikkei in Japan Jumps 1%; Sumitomo Electric Develops Cheaper Car Battery

Nigel Thomas
04 Mar, 2011
New York City

Stocks in Tokyo trading closed higher as crude oil eased and positive economic data in the U.S. The yen fell against the euro lifting the export sensitive stocks. Sumitomo Electric Industries soared 8% after it developed cheaper car battery.

[R]5:00 Tokyo – Stocks in Tokyo trading closed higher as crude oil eased and positive economic data in the U.S. The yen fell against the euro lifting the export sensitive stocks. Sumitomo Electric Industries soared 8% after it developed cheaper car battery.[/R]

The benchmark index in Japan closed higher tracking the gains in overnight trading in New York. Investors in New York and in Europe set aside worries in the Middle East and crude oil eased.

The Nikkei 225 Stock Average increased 10.764 or 1.02% to close at 10,693.66 and the broader Topix index added 6.90 or 0.7% to 955.59.

Trading volume on the first section of Tokyo Stock Exchange increased to 2.3 billion shares matching the weekly average with 968 shares gaining and 518 falling.

For the week, the Nikkei increased 1.6% and the Topix added 1.5%.

The yen closed at 82.35 to a U.S. dollar and fell to 115.15 to one euro. Crude oil in Asian markets edged lower to close at $101.90.

Stocks in Tokyo traded higher after U.S. private sector added more jobs and service industry expanded in February and retailers reported higher sales in the month.

Initial claims of unemployment declined 20,000 to 368,000 last week and dropped to last seen in May 2008.

The Institute for Supply Management said non-manufacturing businesses increased to 59.7 in February to from 59.4 in January.

Same store sales at select department stores increased in February. J.C. Penney sales increased 6.4%, at Macy’s rose 5.8% and Ross Stores rose 3%.

Stock Movers

Sumitomo Electric Industries soared 8.1% o to 1,259 yen after it said it developed advanced car battery that is better than lithium-ion batteries currently used in electric cars. The sodium-ion battery is 90% cheaper than lithium-ion cells.

Export sensitive stocks closed higher after the yen fell against the euro. Nikon Corp soared 1.9% to 1,931 yen and Canon Inc added 1.8% to 3,935 yen.

Automakers gained. Toyota Motor increased 1.2% and Honda Motor added 0.8%. Mazda Motor increased 3.5% to 210 yen.

Asahi Glass increased 3.9% to 1,155 yen and Nippon Electric Glass increased 1.3% to 1,366 yen.