Nikkei in Tokyo Up 0.1%; Nintendo Falls 6%

Nigel Thomas
08 Jun, 2011
New York City

Stocks in Tokyo edged higher as the yen strengthened. Utilities stocks declined on the worries that regulatory oversight may delay restart of 54 nuclear plants after inspection scheduled in spring. Nintendo dropped 6% on heavy volume.

[R]5:30 PM Tokyo – Stocks in Tokyo edged higher as the yen strengthened. Utilities stocks declined on the worries that regulatory oversight may delay restart of 54 nuclear plants after inspection scheduled in spring. Nintendo dropped 6% on heavy volume.[/R]

Stocks in Japan opened higher but weakened on the worries that the U.S. economy may take longer to regain its footing. The yen firmed to a one-month high as the dollar declined.

The comments from the U.S. Fed Chairman Bernanke highlighted the weakness in the labor market but did not offer any new measures to stimulate the economy.

The Nikkei 225 Stock Average added 0.1% to 9,449.46 and the broader Topix index gained 0.1% to 814.45.

Tokyo trading volume fell to 1.7 billion shares from 1.9 billion on Friday previous week average of 1.8 billion shares.

The yen strengthened to 79.71 from 80.21 against one dollar and rose to 115.60 from 116.10 against one euro.

The Cabinet Office said today its Economy Watchers current conditions index increased to 36 in May from 28.3 in April. The index above 50 indicates improving economic conditions.

Stock Movers

Tokyo Electric dropped 7.4% to 200 yen on the worries that the scheduled maintenance of nuclear power plants in next spring may lead to shut down of reactors that do not pass the approval.

In all 54 plants are expected to undergo tests according to an article published by the Nikkei newspaper.

Chubu Electric Power co and Kansai Electric Power Co closed lower. Tohoku Electric Power dropped 3.7% to 838 yen.

Shipping companies gained a fraction on a broker speculation that company valuation are at their lows and are likely to recover.

Yusen KK increased 1.4% to 294 yen and Kawasaki Kisen Kaisha Ltd increased 1.2% to 264 yen.

Banks closed higher after JP Morgan Chase raised its views on bank stocks.

Mitsubishi UFJ Financial Group increased 1.7% to 366 yen and Sumitomo Mitsui Financial Group increased 1.1% to 2,298 yen.

Nintendo dropped 5.7% to 16,930 yen after its latest release of game console at a Los Angeles, California gathering failed to impress analysts. The successor WiiU to its popular Wii machine is expected to lift the deliveries of game consoles.

Nintendo dropped to the lows last seen five years ago and trading volume surged to ten times its daily average of 280,000 shares.

Fanuc declined 1.1% to 12,070 yen and Dentsu fell 3% to 2,065 yen.