Nikkei Surges 1.9% as Yen Falls on Jiabao's Comments

Nigel Thomas
16 Aug, 2012
New York City

Stocks in Japan gained and the benchmark index Nikkei closed at a 6-week high after the yen fell. Comments from Chinese premier and the weakness in the yen prompted a sharp reversal in exports linked companies.

[R]6:00 PM Tokyo – Stocks in Japan gained and the benchmark index Nikkei closed at a 6-week high after the yen fell. Comments from Chinese premier and the weakness in the yen prompted a sharp reversal in exports linked companies.[/R]

Stocks in Tokyo traded sharply higher but trading volume was weak and exports sensitive stocks led the gainers.

The benchmark Nikkei index soared above 9,000 after the yen weakened against the dollar and sparked a short covering rally in export sensitive stocks.

The latest comments from Chinese Premier Wen Jiabao said at a inspection visit in the eastern province of Zhejiang that there is a “growing room for monetary policy operation” and “we have the conditions and capabilities” and “will be sure to fulfil this year’s economic and social development targets.”

The Nikkei 225 Stock Average climbed 167.72 or 1.9% to 9,092.76, the highest since July 4. The broader Topix Index advanced 11.80 or 1.6% to 759.12.

The yen weakened to 79.35 yen from 78.45 yen at close yesterday and traded lower against the euro to 97.47 from 96.26.

Stocks in Review

Honda Motor Co. climbed 53 yen to 2,579 yen and Nissan Motor Co Ltd gained 14 yen to 783 yen.

Nippon Steel added 7 yen to 170 yen and JFE Holdings Inc advanced 51 yen to 1,098 yen.

Canon Inc increased 74 yen to 2,764 yen, Seiko Epson Corp added 6 yen to 533 yen and Ricoh Co Ltd gained 24 yen to 643 yen. Sony Corp climbed 35 yen at 926.

Panasonic Corp soared 30 yen or 5.5% to 573 yen, Toshiba gained 9 yen to 268 yen and Nikon advanced 52 yen to 2,148 yen.

Sharp added 6 yen to 175 yen and was swept higher in the market rally today.

Nintendo Co. Ltd advanced 320 yen at 8,780 yen, Fujitsu gained 3.2% to 319 yen and Pioneer Corp. increased 13 yen to 215 yen.

Fanuc Ltd jumped 540 yen to 13,120 yen and Komatsu Ltd increased 56 yen to 1,742 yen and Hitachi Construction Machinery Co advanced 44 yen to 1,462 yen.

Yamada Denki slipped 15 yen to 4,325 yen. Nitori Holdings Co declined 70 cents to 7,460 yen, apparel retailer Shimamura declined 20 yen to 9,320 yen and Sagami Co soared 13.1% or 17 yen to 147 yen.

Fast Retailing Co. climbed 520 yen to 17,920 yen and J. Front Retailing Co. Ltd gained 5 yen to 388 yen.

Kajima Corp added 4 yen to 226 yen and Taisei Corp rose 2 yen to 219 yen. Sekisui House Ltd increased 8 yen to 742 yen and Daito Trust Construction Co Ltd gained 20 yen to 7,680 yen.

Tokyo Tatemono Co., Ltd jumped 13 yen or 4.7% to 287 yen and Mitsui Fudosan advanced 48 yen to 1,538 yen and Sumitomo Realty & Development Co. climbed 68 yen to 1,979 yen.

Kansai Electric Power Company, Inc rose 1 yen to 669 yen.

Inpex Corp increased 1.7% to 480,500 yen and Japan Petroleum Exploration Co. jumped 90 yen to 3,175 yen.

Mitsui O.S.K. Lines, Ltd added 5 yen to 220 yen, Kawasaki Kisen Kaisha, Ltd rose 3 yen to 112 yen and Nippon Yusen K.K. up 2 yen to 172 yen.

Dai-Ichi Life Insurance surged nearly 7% to 86,700 yen and gained the most in the Nikkei 225 index after the rating agency Moody’s said that the company’s recent purchase of 20% stake in the U.S. based Janus is positive for the bond holders.

Mitsubishi UFJ Financial Group gained 3 yen to 362 yen and Sumitomo Mitsui Financial Group increased 52 yen to 2,464 yen. Nomura Holdings, Inc climbed 11 yen to 280 yen.

Tokio Marine advanced 68 yen to 1,942 yen and Mito Securities soared 6.4% to 149 yen.

Credit Saison Co Ltd slipped 6 yen to 1,840 yen.