Nikkei in Tokyo Rises 1.1% After China Easing

Nigel Thomas
20 Feb, 2012
New York City

Japanese stocks gained on the improved sentiment ahead of the euro zone ministers meeting in Brussels today. Trading sentiment was stronger in the morning after China lowered its bank reserve ratio to stimulate more lending.

[R]8:30 PM Tokyo – Japanese stocks gained on the improved sentiment ahead of the euro zone ministers meeting in Brussels today. Trading sentiment was stronger in the morning after China lowered its bank reserve ratio to stimulate more lending. Export sensitive and China linked construction and machinery stocks closed higher.[/R]

Stocks in Tokyo advanced after China lowered its bank reserve ratios and improved market sentiment ahead of the euro zone ministers meeting to finalize the Greek bailout.

Japan’s Finance Minister June Azumi also said it will work with China to develop a plan to increase capital to International Monetary Fund that will support the bailout fund in the euro zone.

The Nikkei 225 Stock Average advanced 1.1% to 9,485.09 and the broader Topix index added 1.1% to 819.03.

In stock trading, volume declined to 2.42 billion shares from 2.61 billion on Friday on the main board of the Tokyo Stock Exchange.

The yen dropped to a 6-month low to 79.89 against a dollar.

Stock Movers

Universal Entertainment dropped its daily limit of 400 yen to 1,516 yen after the U.S. based Wynn Resorts, Limited sold 20% stake in the company at 31% discount and cited improper payments to Philippines regulators.

It is ironic that Wynn accused the company when it is routinely assailed in the U.S. media for improper payments in Las Vegas, Macau, China and Atlantic City casinos.

Mitsubishi Corp increased 91 yen or 4.8% to 1,970 yen after it agreed to acquire 40% stake in the Cutbank Ridge gas field operated by Encana located in British Columbia, Canada.

Toyota Motor closed up 65 yen at 3,350 yen and Honda Motor Co. added 25 yen to 2,975 yen and Nissan Motor Co Ltd increased 15 yen to 808 yen.

Sony Corp increased 58 yen to 1,681 yen, Panasonic Corp rose 17 yen to 724 yen and Canon Inc closed up 40 yen to 3,590 yen. Nintendo Co. Ltd added 50 yen to 11,660 yen.

Nikon increased 19 yen to 2,146 yen, Fanuc Ltd added 160 yen to 14,410 yen and Kyocera rose 120 yen at 7,060 yen.

Mitsui O.S.K. Lines, Ltd closed up 20 yen to 368 yen, Kawasaki Kisen Kaisha, Ltd closed up 7 yen at 184 yen and Nippon Yusen K.K. added 8 yen to 242 yen.

Fast Retailing Co. increased 10 yen to 16,450 yen and J. Front Retailing Co. Ltd closed down 1 yen to 375 yen.

Mitsubishi UFJ Financial Group increased 5 yen to 411 yen and Sumitomo Mitsui Financial Group rose 25 yen at 2,707 yen. Nomura Holdings, Inc increased 8 yen to 353 yen.

Komatsu Ltd increased 71 yen to 2,423 yen, Hitachi Construction Machinery Co increased 75 yen to 1,694 yen and Toyo Engineering Corp fell 3 yen at 325 yen.

Softbank Corp rose 18 yen at 2,442 yen, KDDI Corp closed up 0.4% to 519,000 yen and NTT DoCoMo, Inc closed down 100 yen to 136,900 yen.