Nikkei Rebounds 1.1%; Mitsubishi Heavy, Daio Paper in Focus

Nigel Thomas
20 Jun, 2012
New York City

Nikkei index in Tokyo rebounded sharply after a statement from the G20 lifted hopes for an action plan in the euro zone and speculators bid up stocks ahead of the U.S. Fed announcement later today. Investors turned attention to domestic companies as the yen stayed strong.

[R]6:30 PM Tokyo – Nikkei index in Tokyo rebounded sharply after a statement from the G20 lifted hopes for an action plan in the euro zone and speculators bid up stocks ahead of the U.S. Fed announcement later today. Investors turned attention to domestic companies as the yen stayed strong.[/R]

Stocks in Tokyo traded sharply higher and trimmed the decline in the year so far as G20 meeting lifted hopes of specific steps in the euro zone and investors awaited the Fed action at the conclusion of a 2-day meeting later today.

The Nikkei 225 Stock Average gained 96.44 or 1.1% to 8,752.31 and the broader Topix index increased 12.65 or 1.7% to 747.34.

The yen was nearly unchanged at 78.93 against one dollar and investors sharpened focus on domestic companies on the persistent strength in the currency.

Stock Movers

Mitsubishi Heavy Industries Ltd declined 3% or 10 yen to 313 yen after a California court ruled that the company was responsible for a radioactive leak at a nuclear plant and did not test pipes before installation.

Kansai Electric Power Company, Inc rose 4 cents to 988 yen and Tokyo Electric Power added 1 yen to 160 yen.

Daio Paper Corp increased 7.2% or 445 yen after Hokuetsu Kishu Paper Co is said to take 20% stake in the company for 10 billion yen. Hokestsu increased 3.3% or 13 yen to 402 yen.

Daio dropped 21% from its high of 740 yen last year after it former chairman was linked to using 10 billion yen company funds for personal gains last year.

Toyota Motor advanced 35 yen to 3,050 yen and Honda Motor Co. gained 27 yen to 2,576 yen and Nissan Motor Co Ltd rose 2 yen to 748 yen.

Tokyo Steel slipped 1.5% after it said it plans to lower prices for all products from July. The news also knocked off other steel makers. Osaka Steel fell 1.1%, Mitsubishi Steel down 1% and JFE Holdings dropped 2.9%.

Sony Corp advanced 37 yen to close at 1,103 yen and Panasonic Corp closed up at 18 yen to 602 yen. Toshiba added 3 cents to 295 yen.

Olympus Corp slumped 20 yen to 1,179 yen, Nikon increased 8 yen to 2,352 yen and Fanuc Ltd declined 210 yen to 12,960 yen. Canon Inc gained 30 yen to 3,230 yen.

Komatsu Ltd increased 24 yen to 1,935 yen and Hitachi Construction Machinery Co advanced 21 yen to 1,523 yen.

Inpex Corp rose 2.4% to 459,500 yen and Japan Petroleum Exploration Co. gained 65 yen to 3,130 yen.

Mitsui O.S.K. Lines, Ltd added 2 yen to 293 yen; Kawasaki Kisen Kaisha, Ltd rose 2 yen to 158 yen and Nippon Yusen K.K. increased 4 yen to 219 yen.

Fast Retailing Co. dropped 40 yen to 15,350 yen and J. Front Retailing Co. Ltd gained 13 yen to 388 yen. Fast Retailing fell after cautious comments from a brokerage firm saying that the stock price reflects all probable good news in the near term.

Mitsubishi UFJ Financial Group increased 10 yen to 370 yen and Sumitomo Mitsui Financial Group advanced 57 yen to 2,537 yen. Nomura Holdings, Inc gained 11 yen to 284 yen.

Credit Saison Co Ltd increased 26 yen to 1,560 yen.

Tokyo Tatemono Co., Ltd rose 6 yen to 285 yen and Mitsui Fudosan advanced 51 yen to 1,430 yen and Sumitomo Realty & Development Co. gained 83 yen to 1,825 yen.

Nippon Steel increased 5 yen to 175 yen and JFE Holdings Inc gained 38 yen to 1,342 yen.