Nikkei in Tokyo Advances to 3-week High; Retailers Fall

Nigel Thomas
24 Jun, 2011
New York City

The benchmark index Nikkei registered 3.5% gain in the week, the largest weekly gain in the year. Stocks advanced to a 3-week high after Greece worries eased and oil fell. Retailers declined after Economy Minister Yosano strongly advocated the increase of consumption tax.

[R]4:30 PM Tokyo – The benchmark index Nikkei registered 3.5% gain in the week, the largest weekly gain in the year. Stocks advanced to a 3-week high after Greece worries eased and oil fell. Retailers declined after Economy Minister Yosano strongly advocated the increase of consumption tax.[/R]

Japanese stocks closed higher after Greece agreed to bailout terms with the European Union and International Monetary Fund. The sharp fall in oil also helped after the release of more oil in international markets.

International Energy Agency controlled by wealthiest nations of the world decided to release 60 million barrels in the world market to make up for the lost production from the NATO aggression in Libya.

The U.S. will release 30 million barrel from its reserves as part of the IEA action.

The Nikkei 225 Stock Average increased 0.9% to 9,678.71 and the broader Topix index added 0.9% to 833.20. For the week, both indexes added 3.5%, the largest weekly gain in the year.

Tokyo trading volume fell to 1.76 billion shares from the 1.72 billion shares in the previous session. Of the stocks traded, 1,144 increased and 406 decreased.

The yen gained to 80.20 from 80.40 against one dollar and eased to 114.90 from 114.10 against one euro.

Overseas investors lowered share holding by 142.8 billion yen in last week, according to the latest data from the Tokyo Stock Exchange.

Stock Movers

Retail sector stocks declined after Economy Minister Karou Yosano strongly advocated the increase of consumption tax to 10% by 2015. The increased sales collection will help cut the down the nation’s deficit.

Seven & I Holdings Co decreased 0.2% to 2,126 yen and Shimachu Co. declined 2% to 1,969 yen.

Export driven companies closed higher after Greece and European Union and the IMF agreed on bailout terms and austerity plan.

TDK Corp increased 1.7% to 4,500 yen and Sony Corp increased 2.4% to 2,077 yen.

Shipping companies closed higher after a freight rate index gained in London trading for the first time this week. The oil decline of 4.3% also helped the shipping companies.

Nippon Yusen KK added 2% to 301 yen and Kawasaki Kisen increased 3.8% to 277 yen. Mitsui OSK increased 3.2% to 417 yen.