Nikkei in Tokyo Rebounds 1.9% as Asian Markets Advance

Nigel Thomas
11 Jun, 2012
New York City

Stocks in Tokyo advanced after European leaders wasted no time in approving the request for Spanish bailout. The swift approval to head-off the widening crisis lifted stocks at least for today but also shifted venue to Italy and Greece. Nikkei surged 1.9% and TDK, Canon and Mazda led the gainers.

[R]6:30 PM Tokyo – Stocks in Tokyo advanced after the euro zone ministers wasted no time in approving the request for Spanish bank bailout. The swift approval to head-off the widening crisis lifted market sentiment at least for today but also shifted venue to Italy and Greece. Nikkei surged 1.9% and TDK, Canon and Mazda led the gainers.[/R]

Stocks in Tokyo trading advanced after the euro zone finance ministers approved the request from Spain to bailout its struggling banks.

The ministers’ commitment to offer as much as €100 billion to recapitalize banks that will support the economic development and lending lifted market indexes around Asia.

The Nikkei index surged and stocks linked to exports to Europe led the gainers. Mazda, Canon and TDK led the trading on the main section of the Tokyo Stock Exchange.

The Nikkei 225 Stock Average gained 165.64 or 1.9% to 8,624.90 and the broader Topix index increased 12.33 or 1.7% to 730.07.

The Hang Seng index in Hong Kong gained 2.5% to 18,953.63, CSI 300 index in Shanghai added 1.3% after China reported a batch of economic data and the Sensex index in India declined 0.3% to 16,668.01. Market indexes in Thailand surged 3.1% and South Korea advanced 3.1% to 248.30.

Over the weekend China reported a raft of economic data indicating generally slowing economy.

However, exports in May surged 15.3% from a year ago to $181.1 billion after rising at 4.9% in April. Imports in the month rose 12.7% to $162.4 billion and trade surplus increased to $18.7 billion from $18.4 billion in April.

Exports for the year to May increased 8.7% to $774.4 billion and imports gained 6.7% to $736.5 billion according to the data released by the General Administration of Customs.

Stock Movers

Kansai Electric Power Company, Inc increased 9 yen to 1,061 yen and Tokyo Electric Power rose 2 yen to 160 yen.

Chubu Electric Power gained 3.1%, Shikoku Electric Power Co added 0.7% and Hokkaido Electric Power advanced by 4.1%.

Toyota Motor increased 50 yen to 3,070 yen and Honda Motor Co. closed up at 71 yen to 2,562 yen and Nissan Motor Co Ltd gained 28 yen to 773 yen.

Sony Corp added 32 yen to close at 1,047 yen and rebounded for the second day from the 32-year low and Panasonic Corp closed up at 26 yen to 569 yen. Toshiba increased 12 yen to 300 yen.

Olympus Corp declined 53 yen to 1,244 yen, Nikon closed up at 59 yen to 2,263 yen and Fanuc Ltd advanced 280 yen to 13,700 yen. Hitachi Ltd increased 17 yen to 464 yen.

Canon Inc gained 110 yen to 3,240 yen and said in a statement that it will spend as much as 50 billion yen to buy back up to 1.4% of its shares before the end of July.

Komatsu Ltd increased 70 yen to 1,913 yen, Hitachi Construction Machinery Co gained 51 yen to 1,491 yen.

Inpex Corp added 2.6% to 453,000 yen and Japan Petroleum Exploration Co. advanced 93 yen to 3,020 yen.

Mitsui O.S.K. Lines, Ltd increased 14 yen to 280 yen; Kawasaki Kisen Kaisha, Ltd soared 9 yen or 6.5% to 148 yen and Nippon Yusen K.K. up 8 yen to 211 yen.

Nippon Sheet Glass Co Ltd rose 2 yen to 83 yen after the Nikkei business daily reported that the company has no plans to raise capital and may slow production at some of its plants.

Asahi Glass Co Ltd increased 16 yen to 540 yen.

Fast Retailing Co. gained 250 yen to 15,500 yen and J. Front Retailing Co. Ltd added 3 yen to 372 yen.

Mitsubishi UFJ Financial Group added 4 yen to 351 yen and Sumitomo Mitsui Financial Group gained 24 yen to 2,374 yen. Nomura Holdings, Inc closed up at 3 yen to 271 yen.

Credit Saison Co Ltd increased 30 yen to 1,549 yen.

Tokyo Tatemono Co., Ltd rose 5 yen to 269 yen and Mitsui Fudosan increased 24 yen to 1,377 yen and Sumitomo Realty & Development Co. advanced 42 yen to 1,689 yen.

Nippon Steel added 4 yen to 172 yen and JFE Holdings Inc gained 37 yen to 1,291 yen.