Nikkei at 7-month High; Tepco Agrees to Government Control

Nigel Thomas
02 Mar, 2012
New York City

Japanese stocks traded higher as the weaker yen lifted auto makers and electronics exporters and shipping companies advanced on the hopes of rising freight to Europe. Tepco is said to have agreed to exchange a majority stake in the company for 1 trillion yen from the government.

[R]8:30 PM Tokyo – Japanese stocks traded higher as the weaker yen lifted auto makers and electronics exporters and shipping companies advanced on the hopes of rising freight to Europe. Tepco is said to have agreed to exchange a majority stake in the company for 1 trillion yen from the government.[/R]

Stocks in Japan gained after consumer prices eased for the fourth month in a row and unemployment rose to 4.6%.

Tokyo Electric Power was in focus after media reports suggested that the company agreed to a government plan to inject 1 trillion yen in exchange for 51% stake. The utility provides power supply to 45 million people and is expected to submit a revised business plan that will focus on how rebuilding its operations.

The Nikkei 225 Stock Average added 0.7% to close at 9,777.03 and the broader Topix index increased 0.8% to 837.82.

The dollar traded at 81.14 yen and flirted with a 9-month high of 81.66 yen.

Japanese companies increased capital spending 7.6% in the quarter to December, higher than expected by economists.

The purchasing managers’ index in China increased to 51 in February from 50.5 in January according to the data released the nation’s statistics bureau. The third monthly increase in a row was driven by rising exports.

Stock Movers

Toyota Motor closed down 20 yen at 3,315 yen and Honda Motor Co. closed unchanged at 3,090 yen and Nissan Motor Co Ltd decreased 9 yen to 818 yen.

Sony Corp increased 8 yen to 1,749 yen, Panasonic Corp fell 10 yen to 742 yen and Canon Inc closed up 25 yen to 3,730 yen. Nintendo Co. Ltd declined 180 yen to 11,800 yen.

Olympus Corp increased 5 yen to 1,329 yen, Nikon decreased 10 yen to 2,174 yen and Fanuc Ltd rose 60 yen to 14,750 yen.

Mitsui O.S.K. Lines, Ltd closed up 3 yen to 369 yen, Kawasaki Kisen Kaisha, Ltd closed up 13 yen to 184 yen and Nippon Yusen K.K. rose 7 yen to 246 yen.

Fast Retailing Co. fell 110 yen to 16,850 yen and J. Front Retailing Co. Ltd closed up 13 yen to 420 yen.

Mitsubishi UFJ Financial Group closed unchanged at 415 yen and Sumitomo Mitsui Financial Group added 4 yen at 2,727 yen. Nomura Holdings, Inc increased 9 yen to 378 yen.

Komatsu Ltd increased 18 yen to 2,372 yen, Hitachi Construction Machinery Co increased 24 yen to 1,702 yen and Toyo Engineering Corp closed up 11 yen to 358 yen.

Softbank Corp fell 15 yen to 2,454 yen, KDDI Corp closed up 0.8% to 526,000 yen and NTT DoCoMo, Inc closed down 200 yen to 139,300 yen.