Nikkei Above 9,000; Kawasaki Kisen, ANA Plunge

Nigel Thomas
03 Jul, 2012
New York City

Stocks in Tokyo extended gains for the second day and the Nikkei index closed above 9,000 for the second time in a row and at an 8-week high. All Nippon Airways Co Ltd plunged 14% and said it plans to raise $2.5 billion. Kawasaki Kisen Kaisha dropped 15% and said it plans to sell 200 million shares.

[R]7:00 PM Tokyo – Stocks in Tokyo extended gains for the second day and the Nikkei index closed above 9,000 for the second time in a row and at an 8-week high. All Nippon Airways Co Ltd plunged 14% and said it plans to raise $2.5 billion. Kawasaki Kisen Kaisha dropped 15% and said it plans to sell 200 million shares.[/R]

In Tokyo trading stocks and market indexes advanced on the rising speculation that central banks in Europe and China are likely to offer more monetary stimulus after weak economic data released on Monday.

Market sentiment was speculative and positive after the euro zone manufacturing declined to an 11-month low in June and jobless rate jumped to a record high above 11%. In addition, China reported weak manufacturing in the month.

The Nikkei 225 Stock Average gained 63.11 to 9,066.59 and the broader Topix index increased 7.77 to 777.11.

The yen traded near 79.70 against one dollar and hovered near 100 yen level against the euro on the hope of additional stimulus from the central bank of Japan.

Stock Movers

All Nippon Airways plunged 14% or 31 yen to 193 yen after the airline said it plans to raise as much as 200 billion yen or $2.5 billion in a share offering.

Yamada Denki extended losses for the second day by 0.6% to 3,845 yen after two brokers lowered their views and price target on the retailer.

Nitori Holdings Co increased 1.3% to 7,520 yen, apparel retailer Shimamura gained 1.9% to 9,250 yen and Sagami Co was unchanged at 122 yen. Marushohotta Co decreased 1 yen and Edion Corp unchanged to 400 yen.

Fast Retailing Co. slumped 240 yen to 15,720 yen and J. Front Retailing Co. Ltd added 4 yen to 401 yen.

Kajima Corp edged up 0.4% to 232 yen and Taisei Corp added 0.4% to 219 yen. Sekisui House Ltd increased 1.7% to 762 yen and Daito Trust Construction Co Ltd gained 1.4% to 7,690 yen.

Tokyo Tatemono Co., Ltd decreased 5 yen to 298 yen and Mitsui Fudosan gained 16 yen to 1,544 yen and Sumitomo Realty & Development Co. added 8 yen to 1,935 yen.

Kansai Electric Power Company, Inc fell 2 yen to 944 yen and Tokyo Electric Power increased 4 yen to 156 yen.

Toyota Motor advanced 45 yen to 3,220 yen and Honda Motor Co. rose 2 yen to 2,732 yen and Nissan Motor Co Ltd gained 7 yen to 750 yen.

Sony Corp increased 7 yen to close at 1,124 yen and Panasonic Corp closed up 7 yen to 636 yen. Toshiba fell 1 yen to 301 yen.

Olympus Corp slumped 10 yen to 1,290 yen, Nikon advanced 73 yen to 2,458 yen and Fanuc Ltd gained 240 yen to 13,080 yen. Canon Inc closed up 40 yen to 3,195 yen.

Nikon gained after Nomura Securities highlighted SLR camera sales increase of 19.5% in May from a year ago.

Komatsu Ltd rose 2 yen to 1,864 yen and Hitachi Construction Machinery Co slid 2 yen to 1,460 yen.

Inpex Corp rose 0.7% to 449,000 yen and Japan Petroleum Exploration Co. increased 15 yen to 3,050 yen.

Mitsui O.S.K. Lines, Ltd slipped 6 yen to 280 yen; Kawasaki Kisen Kaisha, Ltd dropped 23 yen or 15% to 134 yen and Nippon Yusen K.K. fell 3 yen to 211 yen.

Kawasaki Kisen lowered its full-year fiscal profit outlook and said it will raise additional capital and sell 200 million shares and dilute current shareholders by 26%.

Mitsubishi UFJ Financial Group gained 12 yen to 392 yen and Sumitomo Mitsui Financial Group advanced 43 yen to 2,660 yen. Nomura Holdings, Inc added 2 yen to 298 yen.

Credit Saison Co Ltd closed down 18 yen to 1,757 yen.

Nippon Steel fell 1 yen to 179 yen and JFE Holdings Inc dropped 23 yen to 1,295 yen.