Nikkei in Tokyo Rises 1%; Weak Yen Lifts Exporters

Nigel Thomas
22 Feb, 2012
New York City

Stocks in Japan closed higher after positive sentiment lifted indexes. The yen declined to a new low in last six months and investors took optimistic view of the Greek bailout decision. Seibu Electric agreed to sell minority stake to Toyota Motor. Dentsu Inc lifted its annual income outlook.

[R]8:30 PM Tokyo – Stocks in Japan closed higher after positive sentiment lifted indexes. The yen declined to a new low in last six months and investors took optimistic view of the Greek bailout decision. Seibu Electric agreed to sell minority stake to Toyota Motor. Dentsu Inc lifted its annual income outlook.[/R]

Stocks in Tokyo traded higher on the optimistic outlook after European leaders hammered out a deal to release second large bailout in full to Greece. However, a number of questions remain in how Greece will revive its growth.

For now, Greece is not in danger of default and investors took a cautiously optimistic view of the bailout.

The Nikkei 225 Stock Average rose 1% to 9,554.00 and the broader Topix index added 1.1% to 825.40.

The yen dropped to a 6-month low to 80.03 against a dollar.

Investors also were positive after a private survey on China’s manufacturing sector showed its best reading in four months. The sector contracted in February but still the decline slowed to the slowest pace in the last four months.

Stock Movers

Noritsu Koki Co jumped 12.8% to 422 yen after the photo processing equipment maker announced annual dividend of 3 yen a share compared to no dividend a year ago.

Toyota Motor closed up 60 yen at 3,380 yen and Honda Motor Co. rose 61 yen to 2,996 yen and Nissan Motor Co Ltd increased 18 yen to 814 yen.

Seibu Electric & Machinery Co soared after it agreed to sell 1 million shares to Toyota Motor in exchange of 7.3% stake.

Sony Corp increased 25 yen to 1,682 yen, Panasonic Corp rose 16 yen to 726 yen and Canon Inc closed down 25 yen to 3,585 yen. Nintendo Co. Ltd increased 340 yen to 11,830 yen.

Nikon increased 13 yen to 2,158 yen, Fanuc Ltd fell 10 yen to 14,260 yen and Kyocera added 60 yen at 7,070 yen.

Petroleum complex stocks closed higher after crude oil in New York and London trading jumped to a 9-month high.

Japan Petroleum Exploration Co increased 3% to 3,980 yen and Inpex Corp added 1.4% to 577,000 yen.

Mitsui O.S.K. Lines, Ltd closed up 11 yen to 375 yen, Kawasaki Kisen Kaisha, Ltd closed up 1 yen at 182 yen and Nippon Yusen K.K. rose 5 yen to 245 yen.

Fast Retailing Co. gained 160 yen to 16,610 yen and J. Front Retailing Co. Ltd closed up 12 yen to 391 yen.

Dentsu Inc increased 2% or 48 yen to 2,475 yen after the largest advertising agency lifted its full year income estimate to 24.7 billion yen, 8% increase from the previous forecast.

Mitsubishi UFJ Financial Group increased 4 yen to 411 yen and Sumitomo Mitsui Financial Group added 24 yen at 2,698 yen. Nomura Holdings, Inc increased 12 yen to 361 yen.

Komatsu Ltd increased 15 yen to 2,425 yen, Hitachi Construction Machinery Co increased 20 yen to 1,690 yen and Toyo Engineering Corp closed down 1 yen at 324 yen.

Softbank Corp fell 3 yen at 2,456 yen, KDDI Corp declined 0.4% to 518,000 yen and NTT DoCoMo, Inc closed up 2% to 140,100 yen.

Digital Arts Inc soared 5.4% to 43,850 yen after the company won the approval on the listing on the second section of the Tokyo Stock Exchange that will permit trading on junior markets in Osaka and Tokyo.