Nikkei Rebounds 2.1% on Central Banker Comments

Nigel Thomas
18 Apr, 2012
New York City

Stocks in Japan surged the most in three weeks after central bank official showed bank

[R]8:30 PM Tokyo – Stocks in Japan surged the most in three weeks after central bank official showed bank’s preparedness to take steps to ease monetary policy. Japanese exporters were ahead after the IMF lifted global economic growth outlook.[/R]

The benchmark Nikkei index gained the most in three weeks after better than expected earnings at U.S. corporations and the euro zone latest news eased economic and debt worries.

German sentiment improved and Spain successfully sold debt at a lower yield. Markets are still concerned that the euro zone debt contagion may ensnare Spain into deeper economic malaise as the country battles the highest unemployment in the zone.

Market sentiment was also bolstered after Bank of Japan Deputy Governor Kiyohiko Nishimura said that the central bank is ready to take additional steps to ease monetary policy if necessary. The central bank’s willingness to support the economic momentum contributed to the market advance.

The Nikkei 225 Stock Average soared 202.55 or 2.1% to 9,667.26 and the broader Topix index gained 16.18 to 819.27.

In trading, turnover declined to 1.67 billion shares from 1.54 billion shares on Tuesday.

The yen eased to 80.85 against one dollar but above the two-month high of 80.31.

Stock Movers

Toyota Motor closed up 90 yen to 3,330 yen and Honda Motor Co. soared 109 yen to 2,923 yen and Nissan Motor Co Ltd gained 34 yen to 838 yen.

Kansai Electric Power Company, Inc dropped 22 yen to 1,282 yen and Tokyo Electric Power edged down 1 yen to 205 yen.

Sony Corp decreased 9 yen to 1,388 yen and extended losses for the fifth day in a row after the recently appointed company chief laid out a new restructuring plan.

Panasonic Corp closed up 9 yen at 648 yen and Canon Inc gained 120 yen to 3,820 yen. Nintendo Co. Ltd advanced 100 yen to 11,270 yen.

Olympus Corp closed up 5 yen to 1,224 yen, Nikon surged 78 yen to 2,390 yen and Fanuc Ltd soared 400 yen to 14,970 yen. Hitachi Ltd increased 16 yen to 515 yen.

Komatsu Ltd added 91 yen to 2,356 yen and Hitachi Construction Machinery Co gained 73 yen to 1,788 yen after China reported 8.1% increase in economic growth in the first quarter.

Toyo Engineering Corp closed up 18 yen to 387 yen.

Mitsui O.S.K. Lines, Ltd rose 8 yen to 314 yen, Kawasaki Kisen Kaisha, Ltd increased 4 yen to 164 yen and Nippon Yusen K.K. gained 8 yen to 236 yen.

Fast Retailing Co. surged 260 yen to 18,860 yen a day after the largest apparel retailer lifted earnings outlook. J. Front Retailing Co. Ltd closed up 11 yen to 428 yen.

Mitsubishi UFJ Financial Group advanced 11 yen to 397 yen and Sumitomo Mitsui Financial Group soared 62 yen to 2,693 yen. Nomura Holdings, Inc increased 13 yen to 353 yen.

Tokyo Tatemono Co., Ltd closed up 14 yen to 307 yen and Mitsui Fudosan advanced 69 yen to 1,505 yen and Sumitomo Realty & Development Co. gained 77 yen to 1,846 yen.

Nippon Steel added 8 yen to 211 yen and JFE Holdings Inc surged 2.9% or 47 yen to 1,618 yen.