Nikkei Jumps 1.5%, Automobiles and Steel Makers Lead Advance

Nigel Thomas
27 Jul, 2012
New York City

Nikkei index in Tokyo advanced 1.5% and for the week decreased 1.2%. Automakers, steelmakers and shippers led the market advance after comments from the ECB president and short covering fuelled the rally.

[R]7:00 PM Tokyo – Nikkei index in Tokyo advanced 1.5% and for the week decreased 1.2%. Automakers, steelmakers and shippers led the market advance after comments from the ECB president and short covering fuelled the rally.[/R]

Stocks in Tokyo traded higher after European Central Bank president said he would whatever it takes to preserve the euro. The strong affirmation lifted markets in Europe and helped a minor rally in stocks in Asia.

Shippers, automakers and steelmakers led the advance after comments from the ECB president Mario Draghi.

Short sellers were under pressure to cover positions on the possibilities of large new bond purchases by the ECB next week and the possible announcement of new economic measures by the U.S. Fed at the next week’s meeting.

The Nikkei 225 Stock Average advanced 123.54 or 1.5% to 8,566.64 and the broader Topix index increased 11.53 or 1.6% to 726.44.

For the week, the Nikkei slipped 1.2%.

Steel makers traded higher after JFE Holdings Inc reported after the close on Thursday that its quarterly profit doubled.

Stock Movers

Toyota Motor advanced 75 yen to 2,943 yen and Honda Motor Co. increased 90 yen to 2,485 yen. Nissan Motor Co Ltd gained 20 yen to 727 yen.

Canon Inc increased 1.9% to 2,518 yen, Seiko Epson Corp gained 4.3% to 599 yen and Ricoh Co Ltd added 3.8% to 518 yen.

Sony Corp advanced 34 yen to 947 yen and Panasonic Corp soared 28 yen or 5.7% to 523 yen. Toshiba increased 12 yen to 257 yen. Nikon gained 31 yen to 2,136 yen.

Nintendo Co. Ltd added 3.1% to 8,750 yen after the game console maker reported a narrower loss a day ago.

Fanuc Ltd rose 10 yen to 12,690 yen, Komatsu Ltd advanced 70 yen to 1,763 yen and Hitachi Construction Machinery Co gained 55 yen to 1,396 yen.

JFE Holdings Inc jumped 7%, Nippon Steel advanced 1.3% and Kobe Steel Ltd gained 1.4%.

Yamada Denki increased 4.6% or 175 yen to 3,995 yen. Nitori Holdings Co closed down 1.3% to 7,340 yen, apparel retailer Shimamura slipped 1.1% to 8,980 yen and Sagami Co rose 2 yen to 99 yen.

Fast Retailing Co. increased 40 yen to 15,950 yen and J. Front Retailing Co. Ltd slid 3 yen to 384 yen.

Kajima Corp increased 6 yen to 219 yen and Taisei Corp rose 3 yen to 210 yen. Sekisui House Ltd added 1 cent to 743 yen and Daito Trust Construction Co Ltd down 0.2% to 7,630 yen.

Tokyo Tatemono Co., Ltd gained 8 yen to 277 yen and Mitsui Fudosan increased 47 yen to 1,495 yen and Sumitomo Realty & Development Co. advanced 67 yen to 1,926 yen.

Kansai Electric Power Company, Inc slid 10 yen to 625 yen and Tokyo Electric Power fell 1 yen to 125 yen.

Inpex Corp rose 1.4% to 432,500 yen and Japan Petroleum Exploration Co. gained 46 yen to 2,950 yen.

Mitsui O.S.K. Lines, Ltd added 9 yen to 236 yen; Kawasaki Kisen Kaisha, Ltd rose 2 yen to 110 yen and Nippon Yusen K.K. increased 7 yen to 172 yen.

Mitsubishi UFJ Financial Group gained 12 yen to 380 yen and Sumitomo Mitsui Financial Group increased 38 yen to 2,478 yen. Nomura Holdings, Inc soared 13 yen or 5% to 272 yen.

Tokio Marine gained 39 yen to 1,767 yen and Mito Securities increased 3.7% to 140 yen.

Credit Saison Co Ltd increased 42 yen to 1,776 yen.

Nippon Steel soared 10 yen or 6.7% to 160 yen and JFE Holdings Inc surged 70 yen or 7.1% to 1,061 yen.