Nikkei Trades at 6-week High; Olympus Plunges 24%

Nigel Thomas
17 Oct, 2011
New York City

Stocks in Japan closed higher following gains in the international markets and a rise in commodities prices. Thailand flood claim one more industrial estate and another is in direct path of the flood waters north of Bangkok. Olympus plunged 24% on the worries of a regulatory scrutiny.

[R]6:00 PM Tokyo – Stocks in Japan closed higher following gains in the international markets and a rise in commodities prices. Thailand flood claim one more industrial estate and another is in direct path of the flood waters north of Bangkok. Olympus plunged 24% on the worries that regulatory scrutiny may impose fines on the company for improper transaction payments.[/R]

The benchmark index Nikkei gained and reached one-month high following the strength in the international markets and G20 finance ministers endorsed Europe’s plan to tackle sovereign debt crisis.

The Nikkei 225 Stock Average increased 1.5% to 8,879.60 and the broader Topix index added 1.8% to 761.88.

The yen edged higher to 77.21 from 77.07 against one dollar and fell to 104.75 yen against one euro.

In trading on the main section of the Tokyo Stock Exchange, shares worth 891 billion yen changed hands, lower than the average last week.

Thailand floods claimed one more industrial estate increasing the total number of estates closed to six as more electronics and auto parts factories remain closed.

Bangkok for now appears to have been spared despite heavy rains but floods have expanded to central Thailand from the North and Northeast regions. Central bank also said 114 bank branches are closed because of flooding.

Irrigation department assured public that more canals and trenches will be drenched by the end of this week and said an industrial estate Nava Nakorn in Pathun Thani, north of Bangkok may be hit by flood waters this week.

Stock Movers

Toyota Motor increased 73 yen to 2,629 yen and Honda Motor Co. added 81 yen to 2,329 yen and Nissan Motor Co Ltd increased 15 yen to 728 yen.

Sony Corp increased 76 yen to 1,607 yen, Panasonic Corp rose 21 yen to 763 yen and Canon Inc added 25 yen to 3,470 yen.

Olympus plunged for the second day in a row after the chief executive said he was fired after he began asking questions about the payments made during the earlier acquisition in 2008. The company may face legal and regulatory questions according to an independent report from PricewaterhouseCoopers commissioned by the former chief executive.

Olympus Corp dropped 24% or 490 yen to 1,555 yen. Fanuc Ltd increased 90 yen to 12,040 yen. Kyocera increased 190 yen to 7,120 yen.

The Tokyo Electric Power Company decreased 1 yen to 218 yen, Tohoku Electric Power increased 13 yen to 955 yen and the Kansai Electric Power fell 1 yen to 1,173 yen.

Mitsui OSK Lines, Ltd increased 6 yen to 313 yen, Kawasaki Kisen Kaisha closed up 7 yen at 213 yen and Nippon Yusen K.K. rose 3 yen at 208 yen.

Mitsubishi UFJ Financial Group rose 7 yen to 341 yen and Sumitomo Mitsui Financial Group increased 60 yen to 2,188 yen.

Mitsubishi Corp increased 55 yen to 1,615 yen and Mitsui & Co, Ltd increased 30 yen to 1,152 yen. Marubeni Corp increased 15 yen to 445 yen.

Komatsu Ltd increased 50 yen to 1,783 yen and Hitachi Construction Machinery Co increased 23 yen to 1,428 yen.

Dai-ichi Life fell 0.7% to 84,500 yen as European leaders struggle to devise a bank recapitalization plan before the summit deadline of October 23.