Nikkei in Tokyo Surges 2.6% on Production Resumption Progress

Nigel Thomas
30 Mar, 2011
New York City

The benchmark index in Tokyo soared 2.6% after the yen declined and more companies make a progress in resuming production. Hitachi, Nissan and IHI were among the leading companies that resumed partial operations. Tepco dropped another 18%.

[R]5:00 PM Tokyo – The benchmark index in Tokyo soared 2.6% after the yen declined and more companies make a progress in resuming production. Hitachi, Nissan and IHI were among the leading companies that resumed partial operations. Tepco dropped another 18%.[/R]

Stocks in Tokyo advanced on the news that automakers, industrial companies and electronics makers make progress in resuming some production. The decline in yen also lifted the stocks of exporters.

The yen opened below 82 to a dollar and that lifted the stock averages in the early trading.

The Nikkei 225 Stock Average rebounded 2.6% or 249.71 to 9,708.79 and the broader Topix index gained 1.9% to 866.09.

The yen closed at 83.01 to a dollar and to 116.96 to one euro. The dollar gained as talks to raise rates in the U.S. gained momentum to combat the rising inflation driven by higher food and energy prices.

Tokyo Electric Power dropped 18% again to its lowest on the record as the company struggles to contain nuclear disaster.

Stock Movers

Tokyo Electric Power dropped daily limit of 18% to close at a record low in 47 years of trading. The

Automakers, industrial and machinery makers were in focus after the stronger dollar lifted stocks in the sectors.

Nissan Motor soared 3.8% to 731 yen and Toyota Motor increased 2.3% to 3,330 yen.

Kyocera Corp increased 3.9% to 8.360 yen and 8,360 yen and TDK Corp soared 4.4% to 4,825 yen.

Mizuho Financial Group dropped 2.1% to 137 yen

Hitachi Ltd surged 9% to 437 yen after the electronics maker said it has partially resumed its manufacturing operation at its main factory complex in Chiba prefecture and said production is expected to reach normal status next month.

IHI Corp increased 6.4% to 200 yen after the company resumed operations at its two factories in Soma and Fukushima prefectures.

Mitusi Mining & Smelting Co surged 6.8% to 284 yen after a rally in metals prices in London and New York overnight trading.

Nintendo Co. increased 610 yen or 2.8% to 22,380 yen and Elpida Memory Inc increased 3.6% to 1,048 yen.