Nikkei in Tokyo Surges; Jobless Rate Rises to 4.5%

Nigel Thomas
29 Nov, 2011
New York City

Stocks in Japan closed higher for the second day in a row tracking the strength in international markets. The strength in yen continues to affect the jobs climate. October unemployment rate increased to 4.5% as more people join labor force. Shippers and steelmakers rebound but trade near the lows.

[R]7:00 PM Tokyo – Stocks in Japan closed higher for the second day in a row tracking the strength in international markets. The strength in yen continues to affect the jobs climate. October unemployment rate increased to 4.5% as more people join labor force. Shippers and steelmakers rebound but trade near the lows in the decade.[/R]

Stocks surged in Tokyo trading following a regional strength and on the optimism that the European leaders will finalize the plans to activate the rescue fund that will begin the purchase of sovereign bonds.

The Nikkei 225 Stock Average increased 2.3% to 8,477.82 and the broader Topix index rose 2% to 729.68.

The yen at close in Tokyo trading fell 0.2% to 77.66 per U.S. dollar.

Trading volume increased to 1.57 billion from 1.36 billion shares on Monday and for every share that declined 12 gained. But value of shares changing hands declined to 941 billion yen from the average for the year of 1.3 trillion yen.

The unemployment rate increased to 4.5% in October from 4.1% in September, first monthly increase in three months according to the data released by the Ministry of Internal Affairs and Communications.

The number of employed was flat at 62.46 million, unchanged from September but the number of unemployed increased 250,000 to 2.92 million. Compared to a year ago in the month the number of unemployed fell by 460,000.

The ministry said that the employment conditions have not changed and jobs market remains challenging. However, the unemployment rate increased as more people started looking for work and the monthly survey began collecting data from earthquake hit prefectures.

Stock Movers

Toyota Motor increased 46 yen to 2,529 yen and Honda Motor Co. rose 82 yen to 2,395 yen and Nissan Motor Co Ltd added 18 yen to 693 yen.

Sony Corp increased 29 yen to 1,392 yen, Panasonic Corp closed up 20 yen at 726 yen and Canon Inc rose 75 yen at to 3,415 yen.

Nintendo Co. Ltd extended for the third day with a gain of 330 yen or 2.9% to 11,800 yen on the expectations of higher hand-held console sale.

Olympus Corp increased 13 yen or 1.3% to 1,003 yen after the company board members agreed that avoiding the de-listing is the first priority.

Fanuc Ltd increased 470 yen to 12,590 yen and Kyocera closed up 270 yen at 6,870 yen. Nikon Corp added 44 yen to 1,788 yen.

Elpida Memory Inc fell 1% or 4 yen to 390 yen and Ulvac Inc added 76 yen to 1,026 yen.

Shipping companies rebounded from the lows of 10-year and steel companies jumped from the eight years but traded in a tight range.

Mitsui O.S.K. Lines, Ltd rose 8 yen to 248 yen, Kawasaki Kisen Kaisha, Ltd added 8 yen to 138 yen and Nippon Yusen K.K. gained 10 yen at 177 yen.

Daido Steel soared more than 8% to 497 yen after the company said it will enter into a venture with Mitsubishi Corp and the U.S. based Molycorp to develop stronger magnets used in electric cars.

Dai-ichi Life increased 1,400 yen to 84,400 yen.

Ms&Ad Insurance Group Holdings, Inc added 19 yen to 1,494 yen and NKSJ Holdings Inc rose 19 yen to 1,494 yen.

Mitsubishi UFJ Financial Group was 5 yen at 331 yen and Sumitomo Mitsui Financial Group increased 29 yen to 2,111 yen.

Komatsu Ltd increased 47 yen to 1,931 yen and Hitachi Construction Machinery Co increased 23 yen to 1,353 yen.

KDDI Corp declined 1.5% to 513,000 yen after the company said it will issue 200 billion yen of convertible bonds to buy back its own shares from Tokyo Electric Power Co.