Bank of Japan Holds Rates, Nikkei in Weekly 1.2% Rise

Nigel Thomas
15 Jun, 2012
New York City

Stocks in Japan were flat and the Nikkei index in the week closed up 1.2% and extended gains for the second week in a row. Bank of Japan held its target interest rate and asset purchase program and investors look for a coordinated action from the central banks around the world.

[R]6:30 PM Tokyo – Stocks in Japan were flat and the Nikkei index in the week closed up 1.2% and extended gains for the second week in a row. Bank of Japan held its target interest rate and asset purchase program and investors look for a coordinated action from the central banks around the world ahead of Greek election.[/R]

Stocks in Japan barely budged after a tumultuous trading in the week ahead of Greek election on Sunday and Bank of Japan held its interest rate target and asset purchase program.

The move by the central bank was widely expected and markets focused on the yen’s strength and rising debt stress in the euro zone.

Investors also focused on preemptive actions by central banks around the world in the event markets seized after the Greek election. Most central bank watchers are expecting stepped up liquidity actions in a coordinated fashion among Federal Reserve, European Central Bank and central banks of Japan, Switzerland, Canada and UK.

The Nikkei 225 Stock Average edged up 0.43 to 8,569.32 and the broader Topix index rose 0.91 to 726.57. The yen in Tokyo closed at 79.64 against one dollar.

For the week, the Nikkei increased 1.3% after adding 0.2% in the previous week when the index halted nine-week losing streak. The Nikkei is still down 16.4% from its high on Mach 27 and up 1.3% in the year.

The yen closed at 79.27 against one dollar.

Stock Movers

DeNa Co Ltd soared 12% after the social networking announced a share buyback program and lifted the other networking company Gree Inc 8% on the news.

Kansai Electric Power Company, Inc increased 15 cents to 1,042 yen and Tokyo Electric Power 2 yen to 161 yen.

Chubu Electric Power gained 1.8%, Shikoku Electric Power Co rose 0.6% and Hokkaido Electric Power raised by 1.2%.

Toyota Motor dropped 19 yen to 2,996 yen and Honda Motor Co. slumped 11 yen to 2,533 yen and Nissan Motor Co Ltd decreased 5 yen to 740 yen.

Sony Corp slipped 7 yen to close at 1,029 yen and rebounded for the second day from the 32-year low and Panasonic Corp closed up at 5 yen to 572 yen. Toshiba added 1 cent to 293 yen.

Olympus Corp shrank 21 yen to 1,219 yen, Nikon dropped 22 yen to 2,313 yen and Fanuc Ltd declined 90 yen to 13,300 yen. Canon Inc slumped 15 yen to 3,195 yen.

Komatsu Ltd fell 4 yen to 1,885 yen and Hitachi Construction Machinery Co decreased 10 yen to 1,479 yen. Fanuc slides 0.7% to 13,300 yen.

Inpex Corp down 0.6% to 430,000 yen and Japan Petroleum Exploration Co. decreased 12 yen to 2,939 yen.

Mitsui O.S.K. Lines, Ltd unchanged to 283 yen; Kawasaki Kisen Kaisha, Ltd unchanged to 151 yen and Nippon Yusen K.K. up 1 yen to 211 yen.

Fast Retailing Co. advanced 200 yen to 15,490 yen and J. Front Retailing Co. Ltd fell 2 yen to 364 yen as investors begin to factor in the long term impact of higher sales tax. Lawson increased 1.2% as investors turned their focus on domestic stocks.

Mitsubishi UFJ Financial Group gained 6 yen to 356 yen and Sumitomo Mitsui Financial Group increased 22 yen to 2,449 yen. Nomura Holdings, Inc slipped 4 yen to 271 yen.

Credit Saison Co Ltd added 8 yen to 1,526 yen.

Tokyo Tatemono Co., Ltd rose 1 yen to 275 yen and Mitsui Fudosan added 2 yen to 1,356 yen and Sumitomo Realty & Development Co. gained 21 yen to 1,710 yen.

Nippon Steel raised 1 yen to 174 yen and JFE Holdings Inc increased 6 yen to 1,286 yen.