Nikkei in Japan Gains 0.7%; Retailers Lift Earnings Outlook

Nigel Thomas
08 Jul, 2011
New York City

The benchmark index Nikkei in Tokyo closed at a 4-month high after the yen weakened and retailers lifted operating earnings outlook. Utilities rebounded a day after falling sharply on the stress test worries.

[R]4:00 PM Tokyo – The benchmark index Nikkei in Tokyo closed at a 4-month high after the yen weakened and retailers lifted operating earnings outlook. Utilities rebounded a day after falling sharply on the stress test worries.[/R]

Stocks in Japan closed higher tracking gains in New York and Europe and the benchmark index Nikkei rose to a 4-month high. Weaker yen also lifted export related companies.

Before the market opening Japanese government said current account surplus declined less than expected in May by 51.7% to 590.7 billion yen.

The Nikkei 225 Stock Average added 0.7% or 66.59 to 10,137.73 after the index rose above 10,200 for the first time since March 11 and above 10,000 for the fourth time in two months.

The broader Topix index added 0.4% or 3.86 to 874.3 and gained for the eighth time in nine trading days.

Tokyo Stock Exchange first section trading volume decreased to 1.784 billion shares from 1.86 billion shares on Tuesday.

The yen fell to 81.20 from 81.15 against one dollar and to 117.30 from 117.20 against one euro.

Stock Movers

Mitsubishi Estate increased 2% to 1,488 yen after Nikkei business daily reported that company is expected to launch a redevelopment project in Otemachi business district that may cost between 150 billion yen and 200 billion yen.

NTT DoCoMo increased 1.2% to 144,200 yen after the company with China based search engine developer Baidu to distribute games and other mobile device content in China.

Seven & I Holdings increased 1.3% to 2,247 yen after the retailer lifted its operating earnings forecast for the current fiscal year to 274 billion yen from the previous estimate of 248 billion yen.

Toyota Motor increased 1.3% to 3,445 yen, Nissan Motor Co. Ltd increased 0.8% to 870 yen and Honda Motor added 1.4% to 3,260 yen.

Canon Inc increased 1.8% or 70 yen to 3,920 yen and Sony Corp added 0.5% or 11 yen to 2,207 yen. Sony plans to discontinue shipment of mini disc operated Walkman from September.

Utilities retraced some of the lost ground in yesterday’s trading.

Kyushu Electric increased 1.3% to 1,367 yen and Kansai Electric Power added 1.6% to 1,475 yen.

Construction companies led the market gainers on the speculation that reconstruction related demand is higher than earlier estimated.

Kajima Corp increased 2.5% to 244 yen and Obayashi Corp gained 1.1% to 360 yen. Shimizu Corp added 2.4% to 345 yen.