Nikkei in Tokyo Rebounds 0.7%; Toyota Up, Tepco Down

Nigel Thomas
07 Jun, 2011
New York City

The Nikkei benchmark index rebounded on the valuation discount but broader market traded in a tight range. Utilities and banks closed lower on the uncertainty related to Tokyo Electric Power. Automakers closed higher after Toyota scheduled earnings outlook conference on June 10.

[R]5:05 PM Tokyo – The Nikkei benchmark index rebounded on the valuation discount but broader market traded in a tight range. Utilities and banks closed lower on the uncertainty related to Tokyo Electric Power. Automakers closed higher after Toyota scheduled earnings outlook conference on June 10.[/R]

Stocks in Japan rebounded after a week of weak trading. Utilities declined as government spokesperson indicated court led liquidation of the troubled Tepco must be avoided.

The Nikkei 225 Stock Average increased 0.7% to 9,442.95 and the broader Topix index added 0.7% to 813.76.

Markets in Shanghai, Hong Kong, Mumbai and Seoul fell between 1% and 2% and the benchmark index in Australia dropped 2.3%.

Tokyo trading volume declined to 1.75 billion shares worth 1.27 trillion yen on the first section of the Tokyo exchange. In trading, 1,986 increased and 407 declined.

The yen strengthened to 79.98 from 80.65 against one dollar and rose to 113.47 from 116.40 against one euro.

Stock Movers

Electric utilities closed higher after a day of sharp decline. Cabinet Secretary Yukio Edano said liquidation of the troubled utility Tepco should be avoided and compensations to the disaster victims should be assured.

The statement from Edano came a day after the Tokyo Stock Exchange president said Tokyo Electric Power should be liquidated along the lines of Japan Airlines.

Tokyo Electric gained 4.4% to 216 yen and Chubu Electric Power Co increased 2% to 1,152 yen. Kyushu Electric Power added 2.5% to 1,119 yen and Shikoku Electric Power added 3.3% to 1,567 yen.

Kansai Power Co added 2% to 1,226 yen.

Canon Inc declined 3.4% to 3,715 after the camera and office equipment maker said it completed the 50 billion yen share repurchase program.

Auto companies closed higher after Toyota said it will announce its current year earnings estimate on June 10 in Tokyo. The news lifted Toyota related stocks and automakers as supply chain worries eased.

Toyota Motor increased 2.2% to 3,285 yen and Nisan Motor increased 2% to 782 yen. Toyota linked stocks also closed higher.

Aisin Seiki Co, the maker of transmission products added 2% to 2,888 yen and Denso Corp, the maker of air conditioners increased 1.6% to 2,818 yen.