Nikkei Rebounds; Japan Picks Lockheed Fighter

Nigel Thomas
20 Dec, 2011
New York City

The Nikkei index in Tokyo trading gained and defense contractors gained after Japan picked Lockheed Martin built stealth fighter as the main aircraft. IHI Corp and Mitsubishi Heavy will participate in production.

[R]7:00 PM Tokyo – The Nikkei index in Tokyo trading gained and defense contractors gained after Japan picked Lockheed Martin built stealth fighter as the main aircraft. IHI Corp and Mitsubishi Heavy will participate in production.[/R]

Stocks in Tokyo trading edged higher after worries of a conflict in the Korean peninsula receded. The recent death of North Korean leader Kin Jong-il also raised concerns that Japanese intelligence community failed to pick up on the news when it was held secret for two days.

The Nikkei 225 Stock Average rose 40.36 to 8,336.48 and the broader Topix index added 0.3% to 718.49.

International markets in Europe and North America were cautious after European Central Bank President Mario Draghi offered a somber outlook for the euro zone.

Investors were also on the sidelines ahead of the holiday season and growing realization that banks in the euro zone are facing downgrades just as they are looking to raise more capital to meet the revised guidelines.

Stock Movers

Defense contractors closed higher after Japan picked Lockheed Martin built F-35 as the main fighter plane and Mitsubishi Heavy and IHI Corp will participate in the production. The other contenders for the project were Boeing and a consortium of defense contractor led by BAE.

Under the terms of deal that are still not final, Japan is expected to purchase 42 stealth airplanes that are valued at more than $6 billion according to the sources in the Defense Ministry.

The information available from the Defense Ministry suggested that Japan has at least 360 fighter jets and dominated by F-15 and F-4 planes.

IHI Corp increased 4 yen to 184 yen and Mitsubishi Heavy Industries, Ltd added 6 yen to 326 yen.

Toyota Motor decreased 11 yen to 2,476 yen and Honda Motor Co. rose 23 yen to 2,270 yen and Nissan Motor Co Ltd added 7 yen to 689 yen.

Sony Corp decreased 3 yen to 1,316 yen, Panasonic Corp dropped 4 yen at 645 yen and Canon Inc closed down 5 yen to 3,390 yen. Nintendo Co. Ltd increased 20 yen to 10,580 yen.

Nexon Co Ltd extended losses for the fifth day in a row and declined 7 yen to 1,053 yen after the company completed the largest public offering in Japan this year and raised $1.2 billion.

Olympus Corp increased 150 yen to 1,065 yen on the talks that the company is looking to raise $1.3 billion and may pursue a buyout from other large electronics exporters.

Fanuc Ltd closed down 700 yen to 11,760 yen and Kyocera closed down 60 yen at 6,210 yen. Nikon Corp increased 22 yen to 1,693 yen.

Elpida Memory Inc rose 21 yen to 385 yen and Ulvac, Inc rose 9 yen to 969 yen.

Mitsui O.S.K. Lines, Ltd increased 11 yen to 283 yen, Kawasaki Kisen Kaisha, Ltd closed up 3 yen to 135 yen and Nippon Yusen K.K. increased 5 yen to 192 yen.

Daiichi Sankyo Ltd increased 17 yen to 1,473 yen and Astellas Pharma Inc closed unchanged at 3,025 yen.

Fast Retailing Co. added 90 yen to 13,340 yen.

Ms&Ad Insurance Group Holdings, Inc closed down 25 yen to 1,390 yen and NKSJ Holdings Inc fell 23 yen to 1,459 yen.

Mitsubishi UFJ Financial Group closed down 1 yen at 324 yen and Sumitomo Mitsui Financial Group decreased 15 yen to 2,145 yen.

Komatsu Ltd gained 10 yen to 1,808 yen and Hitachi Construction Machinery Co declined 8 yen to 1,273 yen.

Softbank Corp fell 6 yen to 2,304 yen, KDDI fell 0.1% to 486,500 yen and NTT DoCoMo, Inc rose 0.3% to 136,500 yen.