Nikkei in Tokyo Rebounds 4.4%, Banks, Steelmakers Rally

Nigel Thomas
22 Mar, 2011
New York City

Stocks in Tokyo rebounded 4.4% after investors focused on reconstruction efforts. Builders, steelmakers and construction companies led the gainers in Tokyo trading however the situation is far from settled. The focus shifted to food contamination and seawater radiation.

[R]5:00 PM Tokyo – Stocks in Tokyo rebounded 4.4% after investors focused on reconstruction efforts. Builders, steelmakers and construction companies led the gainers in Tokyo trading however the situation is far from settled. The focus shifted to food contamination and seawater radiation.[/R]

Stocks in Tokyo traded higher after nuclear meltdown worries eased after Tokyo Electric Power connected four of the six reactors at the troubled Fukushima plant.

Trading sentiment improved after investors focused on the reconstruction task ahead but higher than earlier estimated radiation in sea water and food raised fears of food contamination.

The Nikkei 225 Stock Average increased 401.57 or 4.4% to 9,608.32 and the broader Topic index increased 37.74 or 4.5% to 868.13.

Banks and construction sector stocks led the recovery in stocks today.

The Nikkei index is still down 8% from its close a day before the earthquake and investors are unsure the fallout from radiation leakage.

Trading volume picked up to 3.6 billion shares, 50% higher than the 3.0 billion share average in the previous three weeks.

Stock Movers

Tokyo Electric Power increased its daily limit 15.8% or 150 yen to 1,098 yen and extended the 19% rise on Friday. Tohoku Electric Power soared 9.3% to 1,630 yen.

Mitsubishi UFJ Financial Group increased 8.3% to 405 yen and Sumitomo Financial Group added 7.9% to 150 yen.

Steelmakers closed higher. Nippon Steel increased 7.1% to 271.

Construction companies Kajima soared 10.1% to 262 yen and Obayashi added 6.6% to 390 yen.

Export sensitive stocks increased. Toyota Motor increased 130 yen or 4% to 3,345 yen and Sony added 3.2% or 81 yen to 3,635 yen. Fujitsu Ltd added 11% to 501 yen and Fanuc Corp gained 5.7% to 12,150 yen.

JX Holdings surged 11.6% to 576 yen after its quake hit oil refinery with a capacity of 270,000 barrels a day resumed its operations.

Toshiba increased 13% to 406 yen after the company denied a report in the Nikkei that it will resume year-end payout after three years.