Nikkei Rebound Led by Consumer and Home Builder Stocks

Nigel Thomas
27 Jun, 2012
New York City

Japanese stock indexes increased for the first time after three days of losses on a rebound in consumer focused stocks and home builders. Construction companies gained on the hopes of advance purchases ahead of sales tax increase in 2014.

[R]6:30 PM Tokyo – Japanese stock indexes increased for the first time after three days of losses on a rebound in consumer focused stocks and home builders. Construction companies gained on the hopes of advance purchases ahead of sales tax increase in 2014.[/R]

Investors in Japan turned inwards and focused on consumer linked stocks and home builders on the prospect of advance sales ahead of a jump in sales tax in 2014.

Prefab home builders and existing apartments and condo sales are likely to benefit before the new sales tax rate of 10% kicks in 2014. Also, cigarette and tobacco companies also gained on the prospect of higher prices after the tax increase.

The Nikkei 225 Stock Average increased 66.50 to 8,730.49 and the broader Topix index rose 6.59 to 745.48. For the June quarter, Nikkei is set to close down 14%, worst in two years.

The yen edged lower to 79.73 against one dollar and fell to 100.12 against the euro.

Stock Movers

Japan Tobacco increase 3.7% to 2,305 yen on the expectation of a price increase of as much as 5% in the next two years.

Home developers and builders gained on the hopes of advanced sales ahead of sales tax increase in 2014.

Kajima Corp gained nearly 7% to 224 yen and Taisei Corp gained 6% to 213 yen. Sekisui House Ltd and Daito Trust Construction Co Ltd also jumped more than 2%.

Tokyo Tatemono Co., Ltd gained 8 yen to 286 yen and Mitsui Fudosan advanced 44 yen to 1,457 yen and Sumitomo Realty & Development Co. increased 54 yen to 1,842 yen.

Kansai Electric Power Company, Inc rose 4 yen to 926 yen and Tokyo Electric Power decreased 5 yen to 155 yen.

Takashimaya Co. extended gains by 1.7% to 600 yen after the retailer reported fiscal first quarter operating profit increased 69% to 5.88 billion yen.

Toyota Motor declined 15 yen to 3,030 yen and Honda Motor Co. slipped 13 yen to 2,607 yen and Nissan Motor Co Ltd rose 1 yen to 721 yen.

Sony Corp dropped 10 yen to close at 1,092 yen and Panasonic Corp closed down at 8 yen to 618 yen. Toshiba fell 1 yen to 289 yen.

Olympus Corp advanced 35 yen to 1,244 yen, Nikon slumped 40 yen to 2,333 yen and Fanuc Ltd plummeted 210 yen to 12,400 yen. Canon Inc dropped 50 yen to 3,075 yen.

Komatsu Ltd decreased 10 yen to 1,845 yen and Hitachi Construction Machinery Co unchanged to 1,476 yen after Chinese manufacturing shrank for the eight month in a row.

Inpex Corp fell 0.4% to 429,000 yen and Japan Petroleum Exploration Co. gained 46 yen to 2,939 yen as the prices of crude oil fell in international markets.

Mitsui O.S.K. Lines, Ltd unchanged to 272 yen; Kawasaki Kisen Kaisha, Ltd rose 3 yen to 153 yen and Nippon Yusen K.K. added 2 yen to 207 yen.

Fast Retailing Co. advanced 280 yen to 15,790 yen and J. Front Retailing Co. Ltd increased 13 yen to 388 yen.

Mitsubishi UFJ Financial Group gained 6 yen to 362 yen and Sumitomo Mitsui Financial Group advanced 50 yen to 2,520 yen. Nomura Holdings, Inc rose 6 yen to 281 yen.

Credit Saison Co Ltd increased 39 yen to 1,651 yen.

Nippon Steel unchanged to 174 yen and JFE Holdings Inc rose 5 yen to 1,282 yen.