Nikkei Inches to 10,000; Yen Near 4-month High

Nigel Thomas
15 Jul, 2011
New York City

Stocks in Japan regained the upper end of the trading range of the last five weeks as the yen hovers near 4-month high. Electronics retailers jumped on the speculation that Japan may revive energy efficiency program as it faces severe power shortage this summer.

[R]4:00 PM Tokyo – Stocks in Japan regained the upper end of the trading range of the last five weeks as the yen hovers near 4-month high. Electronics retailers jumped on the speculation that Japan may revive energy efficiency program as it faces severe power shortage this summer.[/R]

Stocks in Tokyo trading gained and the Nikkei index inched higher near 10,000 as foreign investors returned to add to their holdings. Home electronics makers and retailers gained on the speculation that Japan may revive its energy efficiency program at it faces severe power shortage.

Japan has asked large companies in the Tokyo region to cut down their power consumption by 15% this summer as more than 50 nuclear power plants are under safety review that may be completed by the end of August.

The Nikkei 225 Stock Average increased 0.4% to 9,974.47 and earlier in the day index gained 0.3%. The broader Topix index fell 0.3% to 859.56.

The yen closed at 78.89 but closed at 79.10 against one dollar. In the session the yen traded volatile. The yen also strengthened to 118.82 from 112.10.

Stock Movers

Electronics retailer gained after Shimachu Co added 0.4% to 2,061 yen after the home center retailer reported increase in earnings on the higher sale of energy efficient devices for lighting and gardening.

Yamada Denki increased 2.4% to 6,880 yen and Best Denki Company soared 7% to 261 yen. K’s Holding Corp added 1.8% to 3,975 yen.

Resources linked companies declined after energy prices edged lower. Commodities trading companies declined.

Inpex Corp dropped 1.5% to 588,000 yen and Mitsubishi Corp decreased 0.5% to 2,049 yen and Mitsui & Co edged lower 0.6% to 1.451 yen.

Hitachi added 1.9% to 484 yen after Baltic nation Lithuania selected the company as a preferred supplier to construct a nuclear power plant that is expected to be completed by 2020.

Mitsubishi Chemical Holdings Corp gained 1.9% to 601 yen after a report in the business daily the Nikkei speculated June quarter operating profit of as much as 55 billion yen.