Nikkei in Tokyo Extends Gains

Nigel Thomas
22 May, 2012
New York City

Stocks in Tokyo extended gains for the second day in a row and exporters were in focus after the yen weakened a fraction and political leaders in the euro zone and China supported growth measures. Resources linked companies closed higher. Renesas Electronics is planning to cut 15% of its workforce.

[R]8:30 PM Tokyo – Stocks in Tokyo extended gains for the second day in a row and exporters were in focus after the yen weakened a fraction and political leaders in the euro zone and China supported growth measures. Resources linked companies closed higher. Renesas Electronics is planning to cut 15% of its workforce.[/R]

Stocks in Tokyo extended gains for the second day ahead of the conclusion of the Bank of Japan meeting tomorrow.

The central bank is expected to leave its asset purchase program intact and leave the rates near historic low as world economies struggle and exporters battle a stronger yen.

The Nikkei 225 Stock Average advanced 95.40 or 1.1% to 8,729.29 and the broader Topix index increased 8.18 to 733.33.

In trading, stock turnover declined to 1.51 billion shares on the main section of the Tokyo Stock Exchange from 1.52 billion shares and lower than near average 2 billion shares in the last one month.

The yen traded at 79.35 against a dollar and stayed higher as more Japanese companies repatriate money to support rebuilding efforts and the rising sovereign stress in the world markets look for the safety in the Japanese currency.

Stock Movers

Kansai Electric Power Company, Inc decreased 24 yen to 1,071 yen and Tokyo Electric Power added 1 yen to 163 yen.

Toyota Motor added 75 yen to 3,080 yen and Honda Motor Co. increased 43 yen to 2,602 yen and Nissan Motor Co Ltd gained 33 yen to 776 yen.

Sony Corp increased 11 yen to 1,119 yen. Panasonic Corp closed up at 9 yen to 540 yen and Canon Inc added 5 yen to 3,315 yen.

Toshiba rose 4 yen to 312 yen.

Olympus Corp advanced 23 yen to 1,150 yen, Nikon increased 42 yen to 2,201 yen and Fanuc Ltd added 480 yen to 13,530 yen. Hitachi Ltd increased 11 yen to 473 yen.

Komatsu Ltd advanced 98 yen to 1,954 yen after Nomura said the company president confirmed at an analyst gathering that the new mining demand was stable and the company has not seen any cancelation of orders.

Hitachi Construction Machinery Co gained 39 yen to 1,540 yen.

Inpex Corp rose 2.6% to 465,500 yen and Japan Petroleum Exploration Co. advanced 52 yen to 3,030 yen.

Mitsui O.S.K. Lines, Ltd increased 9 yen to 271 yen; Kawasaki Kisen Kaisha, Ltd added 5 yen to 137 yen and Nippon Yusen K.K. closed up at 8 yen to 206 yen.

Nippon Electric Glass Co Ltd gained 15 yen to 543 yen and Asahi Glass Co Ltd closed up at 16 yen to 569 yen.

Renesas Electronics Corp soared 7% after Yomiuri newspaper reported that the chip maker is planning to raise 50 billion yen in capital and trim 15% of its workforce.

Fast Retailing Co. added 100 yen to 17,200 yen and J. Front Retailing Co. Ltd fell 2 yen to 369 yen.

Mitsubishi UFJ Financial Group increased 6 yen to 342 yen and Sumitomo Mitsui Financial Group gained 34 yen to 2,334 yen. Nomura Holdings, Inc closed up at 5 yen to 269 yen.

Credit Saison Co Ltd unchanged to 1,612 yen.

Tokyo Tatemono Co., Ltd gained 8 yen to 250 yen and Mitsui Fudosan advanced 45 yen to 1,276 yen and Sumitomo Realty & Development Co. surged 50 yen to 1,675 yen.

Nippon Steel rose 3 yen to 182 yen and JFE Holdings Inc advanced 34 yen to 1,330 yen.