Construction Stocks Surge in Tokyo Trading; Nikkei Up 1.1%

Nigel Thomas
17 Jan, 2012
New York City

Stocks in Tokyo trading gained and the Nikkei index increased 1.1% on the strong surge in building contractors. Japan may approve additional budget of 2.5 trillion to expand rebuilding of earthquake stricken areas.

[R]7:00 PM Tokyo – Stocks in Tokyo trading gained and the Nikkei index increased 1.1% on the strong surge in building contractors. Japan may approve additional budget of 2.5 trillion to expand rebuilding of earthquake stricken areas.[/R]

Stocks in Tokyo gained on the earnings expectations and a better than increase in economic data from China. Construction and cement makers gained on the talks of a supplement budget to accelerate the rebuilding of the earthquake stricken areas.

China reported economy expanded at a faster than expected pace of 8.9% in the last quarter and retail sales and industrial production accelerated in December.

The Nikkei 225 Stock Average added 1.1% to 8,466.40 and the broader Topix index increased 0.9% to 731.53.

The yen closed near 11-year high against the euro at 97.04.

In trading, volume increased to 1.76 billion shares from 1.35 billion shares on Monday on the main board of the Tokyo Stock Exchange and 995 shares gained and 505 declined.

Construction and building contractors stocks increased on the talks that Japan may approve additional 2.5 trillion yen supplementary budget before March to expand rebuilding of the earthquake stricken areas. Japan has already approved the 19 trillion yen budget for rebuilding.

China’s GDP Expansion Continues

China reported economy expanded in the fourth quarter at 8.9% and rose 2% from the third quarter. The worries of slowdown in quarter were averted as urbanization continued despite the slowdown in exports to Europe and the U.S.

For the full year 2011, the GDP expanded by 9.2% after growing at 10.4% in 2010.

Economists are estimating the growth to slowdown in the current quarter to 7.5% compared to the increase of 9.7% in the quarter a year ago.

In fiscal year 2011, the economy grew 9.2% from 10.4% in 2010.

Separately, the statistics office also reported that China''s industrial output growth accelerated to 12.8% from a year ago in December from 12.4% in November.

Retail sales in China grew 18.1% annually in December following a 17.3% rise in November 2011.

Stock Movers

Toyota Motor closed down 1 yen to 2,596 yen and Honda Motor Co. rose 19 yen at 2,567 yen and Nissan Motor Co Ltd increased 13 yen to 702 yen. Suzuki Motor Corp rose 10 yen to 1,600 yen.

Sony Corp decreased 4 yen to 1,293 yen, Panasonic Corp fell 5 yen at 611 yen and Canon Inc closed up 25 yen to 3,305 yen. Nintendo Co. Ltd closed unchanged at 10,360 yen. Olympus Corp decreased 25 yen to 1,156 yen.

Nikon Corp rose 7 yen to 1,696 yen, Fanuc Ltd closed up 370 yen to 11,970 yen and Kyocera fell 30 yen to 6,070 yen. Casio Computer Co., Ltd decreased 2 yen to 438 yen.

Mitsui O.S.K. Lines, Ltd increased 5 yen to 252 yen, Kawasaki Kisen Kaisha, Ltd closed flat at 126 yen and Nippon Yusen K.K. increased 1 yen to 176 yen.

Fast Retailing Co. increased 140 yen to 14,750 yen and J. Front Retailing Co. Ltd added 4 yen to 360 yen.

Mitsubishi UFJ Financial Group added 4 yen to 329 yen and Sumitomo Mitsui Financial Group increased 27 yen to 2,221 yen.

Hitachi Construction Machinery Co increased 22 yen to 1,379 yen and Toyo Engineering Corp decreased 3 yen to 303 yen.

Softbank Corp closed down 21 yen at 2,102 yen, KDDI increased 1% to 487,500 yen and NTT DoCoMo, Inc closed down 1% to 137,600 yen.

Obayashi Corp increased 3.3% to 371 yen, Kajima Corp added 9 yen to 259 yen and Shimizu Corp increased 12 yen to 349 and Tobishima Corp soared 37.5% to 110 yen.

Japan Bridge Corp soared 16% or 100 yen to 728 yen.