Nikkei in Tokyo Rises 1%; Bridgestone, Banks, Realty Developers Up

Nigel Thomas
04 Jul, 2011
New York City

Stocks in Tokyo advanced following a surge in U.S. indexes and a rise in manufacturing index. The Nikkei index gained 1% and traded above 10,000 for the first time since May 2 on a strong rise in real estate developers and financials. Bridgestone increased commercial vehicles tires prices by 10%.

[R]4:00 PM Tokyo – Stocks in Tokyo advanced following a surge in U.S. indexes and a rise in manufacturing index. The Nikkei index gained 1% and traded above 10,000 for the first time since May 2 on a strong rise in real estate developers and financials. Bridgestone Corp increased commercial vehicles tires prices by 10%.[/R]

Tokyo benchmark index advanced and reach above 10,000 for the first time since May 2 on the strength in financials and real estate developers.

Markets in Asia closed higher on the back of the largest weekly increase in the U.S. indexes in two years. The benchmark indexes in Japan and Korea gained more than 1%, in Shanghai added 1.8% and in India increased 0.5%.

The Nikkei 225 Stock Average increased 1% to 9,965.09 and traded as high as 10,005.52. The broader Topix index added 1.2% or 10.25 to 864.11. The Topix index extended the gains for the fifth day in a row.

Tokyo Stock Exchange first section trading volume increased to 1.88 billion shares from 1.67 billion shares on Thursday. Advancers led the decliners by 1,256 to 315.

The yen added to 80.70 from 80.90 against one dollar and to 116.95 from 117.25 against one euro.

Stock Movers

Real estate developers led the gainers on the speculation that the demand for commercial real estate is nearing a rebound after three months of weakness.

Mitsui Fudosan increased 4.2% to 1,445 yen and Mitsubishi Estate Co. increased 2.6% to 1,447 yen. Sumitomo Realty Development Co. added 3.1% to 1,873 yen.

Large banks in Japan gained despite cautious comments from a rating agency. Standard & Poor’s noted in its research that Greece may yet default on its debt despite the debt rollover offered by French and German banks.

Mitsubishi UFJ Financial Group increased 2.8% to 409 yen and Sumitomo Financial Group Inc added 2.7% to 2,567 yen.

Utilities stocks closed higher after more local government officials approved the restart of nuclear power plants.

Kyushu Electric Power increased 2.7% to 1,499 yen after mayor of Genkai Prefecture approved the restart of two nuclear reactors after safety checks.

Tokyo Electric Power Co. soared 20% to 393 yen after Chief Cabinet Secretary Yukio Edano denied a media report that the government is looking to break up and nationalize the company.

Auto makers closed higher after the U.S. manufacturing index advanced for the first time in four months.

Honda Motor increased 3.5% to 3,220 yen and Toyota Motor increased 1.5% to 3,385 yen.

Bridgestone increased 2.8% to 1,916 yen and the tire maker said it will increase price of commercial vehicles tires by 10%.

Access, the maker of mobile phone software soared 12% to 74,100 yen after it signed a patent agreement with Nokia.