Nikkei in Japan Advances 1.7%; Sony Secures EMI Bid Financing

Nigel Thomas
06 Oct, 2011
New York City

Stocks in Japan gained following a decline for four days in a row. Resource stocks and banks led the gainers. Aeon Co jumped 5% after it lifted its annual outlook. Sony Corp rebounded from a 25-year low after it secured funding to bid for the UK based EMI.

[R]6:00 PM Tokyo – Stocks in Japan gained following a decline for four days in a row. Resource stocks and banks led the gainers. Aeon Co jumped 5% after it lifted its annual outlook. Sony Corp rebounded from a 25-year low after it secured funding to bid for the UK based EMI.[/R]

Stocks in Tokyo traded higher after a 4-day decline and the indexes gained tracking two-day rally in the European and New York markets.

Investors’ sentiment was positive after German Chancellor Angela Merkel offered her support for the bank recapitalization in Europe. The U.S. private sector payroll increase and service sector growth also raised hopes that Friday’s overall payroll data may be higher than expected.

The Nikkei 225 Stock Average increased 1.7% to 8,522.02 and the broader Topix index fell 1.5% to 736.86.

The yen edged lower to 76.69 from 76.85 against one dollar and traded near one-decade high against the euro to 102.06 from 102.14.

In trading, volume declined to 1.63 billion shares from 2.06 billion on Wednesday on the First Section of the Tokyo Stock Exchange.

Stock Movers

Aeon Co increased more than 5% to 1,079 yen after the retailer lifted its full year outlook.

Fast Retailing increased 1.2% to 13,500 rebounded from a 4% loss in the previous session.

Japan Petroleum Exploration Co increased 108 yen to 2,784 yen and Inpex increased 2.5% to 468,500.

The Tokyo Electric Power Company increased 8 yen to 211 yen, Tohoku Electric Power increased 2.6% or 26 yen to 1,042 yen and the Kansai Electric Power fell 6 yen to 1,233 yen.

Mitsui OSK Lines, Ltd increased 3.1% to 266 yen, Kawasaki Kisen Kaisha closed unchanged at 141 yen and Nippon Yusen K.K. was unchanged at 189 yen.

Mitsubishi UFJ Financial Group rose 1 yen to 326 yen and Sumitomo Mitsui Financial Group increased 3 yen to 2,069 yen.

Trading companies were on the rise following the gains in the commodities prices.

Mitsubishi Corp increased 37 yen to 1,434 yen and Mitsui & Co gained 23 yen to 1,049 yen. Marubeni Corp increased 5 yen to 379 yen.

GS Yuasa soared 7% to 352 yen after the company plans to increase at its automotive battery joint venture to meet the higher demand. The stock soared after it traded at near 3-year low.

Komatsu increased 32 yen to 1,490 yen and Hitachi Construction Machinery Co increased 37 yen to 1,317 yen.

Dai-ichi Life soared 3% to 78,100 yen as the European leaders struggle to contain the fallout from the deepening crisis in Greece and prevent it from spreading to Spain and Italy.

Toyota Motor increased 21 yen to 2,538 yen and Honda Motor Co. rose 35 yen to 2,230 yen and Nissan Motor Co Ltd increased 28 yen to 686 yen.

Sony Corp surged 4.7% to 1,470 yen and the company arranged financing through the sovereign fund controlled by Abu Dhabi to purchase the UK based EMI.

Panasonic Corp added 23 yen to 732 yen and Canon Inc closed up 100 yen to 3,530 yen. Sharp Corp increased 22 yen to 663 yen.

Olympus Corp added 83 yen to 2,358 yen. Fanuc Ltd increased 400 yen to 10,530 yen. Kyocera increased 210 yen to 6,560 yen.