Nikkei Rebounds 2% After 3-day Sell-off; Gree, DeNa, Kirin Up

Nigel Thomas
07 Sep, 2011
New York City

The Nikkei index in Tokyo gained more than 2% after dropping 6% in a three day sell-off. Export and resource linked companies led the broad advance in the market. Social media sites soared on broker comments.

[R]6:00 PM Tokyo – The Nikkei index in Tokyo gained more than 2% after dropping 6% in a three day sell-off. Export and resource linked companies led the broad advance in the market. Social media sites soared on broker comments.[/R]

Stocks in Japan rose after falling for three days in a row. The Nikkei index gained more than 2% after falling 5.2% in the three-day sell-off. The index rebounded on a short covering rally that lifted banks, exporters and industrial companies. The yen weakened.

The Nikkei 225 Stock Average rose 2.01% or 172.84 to 8,763.41 and the broader Topix index added 1.7% or 12.43 to 753.63.

Trading volume on the First Section of the Tokyo Stock Exchange decreased to 1.76 billion and 1,185 shares gained and 342 stocks declined.

The yen edged lower to 77.11 from 76.97 against one dollar.

Stock Movers

Elpida Memory jumped 7.5% to 499 yen and Advantest added 4.7% to 921 yen. Renesas Electronics jumped 7.5% to 490 yen.

Elpida said it has taken legal action against Taiwan based Nanya Technology Corp in the U.S. for the violation of four patents.

Mitsubishi UFJ Financial Group added 1.2% to 329 yen and Sumitomo Mitsui Financial Group increased 1.2% to 2,125 yen. Mizuho Financial Group added 1 yen to 111 yen.

Inpex Corp increased 1.6% to 471,500 yen and Japan Petroleum Exploration Co rose 59 yen to 2,983 yen.

Nippon Steel increased 1.3% to 225 yen and JFE Holdings, Inc rose 3.3% to 1,743 yen. Kobe Steel added 1 yen to 137 yen.

Toyota Motor increased 2.9% to 2,680 yen and Honda Motor Co. added 1.6% to 2,376 yen and Nissan Motor gained 2.6% 672 yen.

Kirin Holdings Co increased 3.2% to 994 yen after a local report suggested that the company has discovered a lactic bacterium that strengthens immune cells.

Sony Corp added 3.2% to 1,570 yen and Canon Inc increased 1.5% to 3,500 yen.

Gree Inc jumped 13% to 2,614 yen and DeNa Co added 8% to 3,995 after positive comments from an analyst at Mitsubishi UFJ Morgan Stanley. The analyst also estimated the size of the Japanese advertising market on social media sites to be as large as 400 billion yen by 2013.

Construction equipment makers liked to China closed higher. Komatsu added 1.2% to 1,918 yen and Hitachi Construction Machinery Co increased 2.9% to 1,369 yen.

Shipping companies closed higher. Nippon Yusen KK gained 2.3% to 223 yen and Mitsui O.S.K. Lines Ltd advanced 4% to 316 yen. Kawasaki Kisen Kaisha Ltd increased 3.3% to 187 yen.

Isetan Mitsukoshi Holdings increased 2% to 760 yen and Takashimaya Co increased 2% to 516 yen.