Steelmakers Lift Japanese Indexes

Nigel Thomas
09 Mar, 2012
New York City

Stocks in Tokyo advanced for the second day in a row after China reported easing of inflation and Greece debt swap attracted higher than expected participation. Steelmakers and infrastructure stocks led the gainers. The yen traded near 9-month high.

[R]8:30 PM Tokyo – Stocks in Tokyo advanced for the second day in a row after China reported easing of inflation and Greece debt swap attracted higher than expected participation. Steelmakers and infrastructure stocks led the gainers. The yen traded near 9-month high.[/R]

Stocks in Tokyo gained for the second day in a row after Greece won a landmark bond swap deal and China’s inflation eased to a 20-month low.

The Nikkei 225 Stock Average gained 1.6% to close at 9,929.74 and the broader Topix index increased 1.5% to 848.71. The Nikkei gained 1.6% in the week and crossed 10,000 for the first time in eight months.

Trading volume increased 60% from the last two weeks of average to a one-year high of 2.65 billion shares.

The dollar traded at 81.84 yen and flirted with a 9-month high of 81.66 yen and gained against the euro to 108.63.

China reported consumer price index in February slowed to a 20-month low to 3.2% from 4.5% in January. Also, industrial production increased 11.4% in the first two months of the year from the year ago period and retail sales rose 14.7% in the period.

Beijing combines the January and February data of production, investment and retail sales to avoid distortions caused by the Lunar New Year holiday.

Stock Movers

Toyota Motor closed up 90 yen at 3,420 yen and Honda Motor Co. increased 85 yen to 3,120 yen and Nissan Motor Co Ltd increased 19 yen to 836 yen.

Sony Corp increased 70 yen to 1,718 yen, Panasonic Corp increased 25 yen to 735 yen and Canon Inc closed up 45 yen to 3,760 yen. Nintendo Co. Ltd increased 390 yen to 11,690 yen.

Olympus Corp increased 17 yen to 1,317 yen, Nikon gained 28 yen to 2,269 yen and Fanuc Ltd increased 140 yen to 14,720 yen.

Mitsui O.S.K. Lines, Ltd increased 12 yen to 361 yen, Kawasaki Kisen Kaisha, Ltd closed up 3 yen to 177 yen and Nippon Yusen K.K. rose 9 yen to 243 yen.

Fast Retailing Co. increased 260 yen to 17,660 yen and J. Front Retailing Co. Ltd closed up 2 yen to 430 yen.

Mitsubishi UFJ Financial Group gained 10 yen to 425 yen and Sumitomo Mitsui Financial Group increased 49 yen to 2,784 yen. Nomura Holdings, Inc rose 7 yen to 385 yen.

Real estate companies gained after a broker Miki Shoji Co. said Tokyo office vacancy rate fell to 9.15% in February from 9.23% in January.

Tokyo Tatemono Co., Ltd rose 3 yen to 338 yen and Mitsui Fudosan added 28 yen to 1,579 yen and Sumitomo Realty & Development Co. increased 20 yen to 1,974 yen.

Komatsu Ltd increased 21 yen to 2,363 yen, Hitachi Construction Machinery Co increased 78 yen to 1,778 yen and Toyo Engineering Corp closed fell 1 yen at 359 yen.

Steel makers traded higher. Nippon Steel gained 4.5% to 233 yen and JFE Holdings Inc increased 5.4% or 87 yen to 1,687 yen.

Japan Bridge Corporation fell 1.7% to 444 yen and Miyaji Engineering Group Inc decreased 3.8% to 174 yen and highway contractor Tekken Corp fell 1.4%.

Softbank Corp increased 32 yen to 2,383 yen, KDDI Corp closed up 1.3% to 533,000 yen and NTT DoCoMo, Inc closed up 1000 yen to 141,300 yen.