Nikkei Above 10,000, Yen Drops to 10-month Low

Nigel Thomas
14 Mar, 2012
New York City

The benchmark index Nikkei in Tokyo jumped 1.5% and closed above 10,000 for the first time in seven months. Weakening yen and improving U.S. economic outlook lifted the index as fund managers prepare for the end of fiscal year.

[R]8:30 PM Tokyo – The benchmark index Nikkei in Tokyo jumped 1.5% and closed above 10,000 for the first time in seven months. Weakening yen and improving U.S. economic outlook lifted the index as fund managers prepare for the end of fiscal year.[/R]

Stocks in Tokyo surged following the gains in international markets after the U.S. retail sales advanced and the tech heavy Nasdaq closed at a 12-year high.

Investors also focused on the weakening yen and the improving U.S. economic data that lifted the prospects of exporting companies.

The Nikkei 225 Stock Average gained 1.5% to close at 10,050.52 and the broader Topix index increased 1.3% to 857.11.

The dollar traded at 83.32 yen and rose a new 11-month high.

Markets in Asia and Europe continued their advances as world economic sentiment improves after a string of positive economic data from the U.S. For the year, the Nasdaq led the advance in the U.S. with a rise of 17% followed by a gain of 11% in the S&P 500.

The market index in Japan is now up 19% and in India and Hong Kong are up 16%. The benchmark indexes in Germany are up 20% in the year so far.

Stock Movers

Sharp Corp gained more than 4% or 22 yen to 531 yen after the company replaced its current president Mikio Katayama and named Takashi Okuda as new head.

Toyota Motor closed up 70 yen at 3,485 yen and Honda Motor Co. increased 85 yen to 3,185 yen and Nissan Motor Co Ltd increased 32 yen to 873 yen.

Four headlights makers for automobiles rebounded a day after Japan’s Fair Trade Commission began investigation for price fixing.

Stanley Electric Co. rose 0.3% to 1,275 yen, Mitsuba Corp increased 2.7% to 791 yen and Koito Manufacturing Co. fell 1% to 1,327 yen. Ichikoh Industries Ltd increased 1.9% to 161 yen.

Maezawa Kasei Industries Co. soared 13% to 988 yen after the maker of synthetic resin products lifted its net income estimate by 31% to 850 million for the fiscal year ending in March.

Sony Corp increased 88 yen to 1,790 yen, Panasonic Corp increased 9 yen to 758 yen and Canon Inc closed up 125 yen to 3,805 yen. Nintendo Co. Ltd soared 550 yen to 12,030 yen.

Olympus Corp was unchanged at 1,300 yen, Nikon increased 69 yen to 2,405 yen and Fanuc Ltd surged 350 yen to 15,100 yen after positive comments from a foreign broker.

Mitsui O.S.K. Lines, Ltd increased 5 yen to 360 yen, Kawasaki Kisen Kaisha, Ltd closed up 3 yen to 175 yen and Nippon Yusen K.K. rose 6 yen to 245 yen.

Fast Retailing Co. increased 80 yen to 17,860 yen and J. Front Retailing Co. Ltd closed unchanged to 435 yen.

Mitsubishi UFJ Financial Group increased 11 yen to 433 yen and Sumitomo Mitsui Financial Group increased 71 yen to 2,865 yen. Nomura Holdings, Inc increased 13 yen to 399 yen.

Tokyo Tatemono Co., Ltd increased 14 yen to 352 yen and Mitsui Fudosan gained 46 yen to 1,663 yen and Sumitomo Realty & Development Co. increased 69 yen to 2,042 yen.

Komatsu Ltd increased 80 yen to 2,390 yen, Hitachi Construction Machinery Co increased 68 yen to 1,870 yen and Toyo Engineering Corp closed up 8 yen at 360 yen.

Steel makers traded higher. Nippon Steel increased 2.5% to 239 yen and JFE Holdings Inc soared 6.1% or 104 yen to 1,801 yen.

Softbank Corp increased 18 yen to 2,411 yen, KDDI Corp closed up 1.4% to 548,000 yen and NTT DoCoMo, Inc closed up 100 yen to 141,100 yen.