Nikkei in Tokyo Up on Weaker Yen; TDK Lifts Dividend

Nigel Thomas
21 Jun, 2011
New York City

Stocks in Japan increased for the second day in a row after investors focused on the domestic manufacturing recovery. TDK Corp gained after it increased dividend and estimated net to increase 11% in the current year.

[R]5:00 PM Tokyo – Stocks in Japan increased for the second day in a row after investors focused on the domestic manufacturing recovery. TDK Corp gained after it increased dividend and estimated net to increase 11% in the current year.[/R]

Stocks in Japan advanced for the second day in a row after the yen weakened and investors focused on the prospects of speedy improvement in manufacturing activities in Japan.

Investors anticipated the success of crucial vote of confidence in Greece today to approve austerity measures and focused on the outcome of the 2-day U.S. Fed meeting.

The nervous investors resumed buying stocks on the expectations that the fast evolving Greek crisis will be contained from spreading to other smaller economies in the euro-zone.

The statement from the International Monetary Fund highlighted the underlying risks of Greek crisis is not contained soon.

The statement in a regular report released last evening noted “failure of decisive actions” in tackling could quickly “spread the tensions to the core of the euro area” and threaten the world recovery.

However, Greece and the IMF, ECB and euro-zone minister remain at odds in how to solve the fast developing debit crisis.

The euro area finance ministers are looking for austerity terms that are not yet agreed in Greece and the debt restructuring plan is not accepted by the European Central Bank.

The Nikkei 225 Stock Average rose 1.1% to 9,459.66 and the broader Topix index increased 1.1% to 815.73.

Tokyo trading volume fell to 1.6 billion shares from the daily average of 1.82 billion shares in the last week. Of the stocks traded, 1,308 increased and 241 decreased.

The yen fell to 80.45 from 80.28 against one dollar and rose to 115.35 from 114.10 against one euro.

Stock Movers

TDK Corp increased 3.3% to 4,485 yen after the electronics maker estimated sales for the current fiscal year to increase 2% 890 billion yen and net to gain 11% to 50 billion yen. The company also plans to increase dividend to 90 yen from 80 yen in the last fiscal year

Kubota added 2.9% to 681 yen after the construction machinery maker said full-year net is expected to increase 9.4% to 60 billion yen and sales to rise 7.1%.

Automakers were among the most active stocks in Tokyo trading. Nissan Motor increased 3.1% to a 5-week high to 820 yen and Toyota Motor added 0.9% to 3,205 yen.

Panasonic declined 0.7% to 923 yen after it estimated current year operating earnings to decline 11% to 270 billion yen.

Super market operator, Aeon increased 3.8% to 931 yen after the Nikkei newspaper said first quarter profit is expected to increase 30% to 28 billion yen.

Sparx Group soared 4.2% to 7,400 yen after the company said it plans to raise $100 million that will fund the development of temporary hotels in the area affected by earthquake.

Tokyo Electric Power Co. decreased 2.95% to 305 yen after a rating agency lowered its credit rating to junk level.

Chubu Electric Power increased 4.2% to 1,500 yen after utilities stocks gained in the session.