Nikkei in Tokyo Soars 2.3%; Hoosiers, Olympus Rise

Nigel Thomas
16 Sep, 2011
New York City

The Nikkei index in Tokyo soared 2.3% and markets in Asia gained more than 2% after four central banks coordinated to provide more short term dollar liquidity to European banks. Tokyo Electric Power declined 6%. Hoosiers Corp jumped its daily limit of 20.3% on earnings revision.

[R]6:00 PM Tokyo – The Nikkei index in Tokyo soared 2.3% and markets in Asia gained more than 2% after four central banks coordinated to provide more short term dollar liquidity to European banks. Tokyo Electric Power declined 6%. Hoosiers Corp jumped its daily limit of 20.3% on earnings revision.[/R]

Stocks in Tokyo trading soared more than 2% after four central banks coordinated their action to provide more liquidity to European banks.

The Bank of Japan and central banks in UK, Switzerland coordinated with the U.S. Federal Reserve to offer three month short term funding in dollars to European banks. The European Central Bank will increase the loan maturity to 3-months from one week as banks struggle to refinance their needs.

The Nikkei 225 Stock Average rose 2.3% to 8,864.16 and the broader Topix index added 2.2% to 768.13. The Topix increased 1.6% in the week and fell 13% in the last seven weeks when foreigners began lowering their net stock holdings.

The yen edged lower to 76.63 from 76.85 against one dollar and the euro rose from the 10-year low to 106.99 after trading at 105.29 yesterday.

Trading volume on the First Section on the Tokyo Stock Exchange decreased to 1.55 billion shares, lower than 1.82 billion shares average last week.

Stock Movers

Mitsubishi UFJ Financial Group rose 4.6% to 345 yen and Sumitomo Mitsui Financial Group increased 4.1% to 2,181 yen. Mizuho Financial added 2 yen to 115 yen.

Tokyo Electric Power declined 5.9% to 335 yen after the head of Japanese Bankers Association repeated his earlier statement that banks will not forgive loans to the troubled utility even if asked by the government.

Inpex Corp increased 4% to 518,000 yen and Japan Petroleum Exploration Co increased 115 yen to 3,140 yen.

Nippon Steel increased 6 yen to 237 yen and JFE Holdings, Inc rose 74 yen to 1,880 yen. Kobe Steel, Ltd added 5 yen to 144 yen.

Toyota Motor increased 44 yen to 2,734 yen and Honda Motor Co. added 60 yen to 2,448 yen and Nissan Motor increased 23 yen to 689 yen. Suzuki Motor increased 57 yen to 1,610 yen.

Sony Corp rose 65 yen to 1,578 yen, Panasonic Corp added 15 yen to 769 yen and Canon Inc increased 4.3% to 3,410 yen. Kyocera added 2.4% to 6,910 yen.

Olympus jumped 7.4% to 2,225 yen after the Citibank made positive comment and cited strong demand for its digestive endoscopes in developing nations. Citibank also estimated that the company has 70% global market share.

Fanuc rebounded 4% to 11,390 yen. Kyocera added 2.4% to 6,910 yen.

Corona Corp increased 8% to 1,299 yen after the air-conditioners and heaters maker increased its full-year dividend to 24 yen from 18 yen.

Komatsu added 72 yen to 1,796 yen and Hitachi Construction Machinery Co added 2.5% to 1,357 yen.

Hoosiers Corp jumped its daily limit of 5,000 yen or 20.3% to 29,660 yen after the condominium developer boosted its fiscal year annual net income by 16% to 3.55 billion yen.

Shoei Co. declined 8.5% to 618 yen after the property developer increased its estimate of annual net loss to 2 billion yen from 1.6 billion yen.

Nippon Yusen KK rose 4 yen to 233 yen and Mitsui O.S.K. Lines Ltd added 1 yen to 341 yen. Kawasaki Kisen Kaisha Ltd rose 5 yen to 186 yen.

Isetan Mitsukoshi Holdings increased 8 yen to 780 yen and Takashimaya Co added 2 yen to 537 yen. Fast Retailing Co decreased 10 yen to 13,930 yen.

Tyo Inc dropped 14.3% to 78 yen after the TV-commercials maker reported net income of 688 million yen compared to net loss of 322 yen in the previous year ending at the end of July.