Nikkei Extends Gains, Don Quijote up 5%

Nigel Thomas
20 Aug, 2012
New York City

Stocks in Japan traded mixed and domestic economy linked companies were favoured in thin trading. Home prices in China gained, dashing any hopes of additional government stimulus. The discount retailer Don Quijote surged 5% on higher estimated earnings.

[R]6:00 PM Tokyo – Stocks in Japan traded mixed and domestic economy linked companies were favoured in thin trading. Home prices in China gained, dashing any hopes of additional government stimulus. The discount retailer Don Quijote surged 5% on higher estimated earnings.[/R]

Stocks in Tokyo generally closed down but the benchmark Nikkei extended gains of the last two weeks in thin trading.

In Tokyo and most of Asian markets, stocks were on the defensive ahead of meeting of leaders of Germany and Greece this week and scheduled meetings between the leaders of France and Germany to finalize the terms of lending for Greece.

Greece is looking to extend loan repayment by two more years and seeking relaxed austerity measures from the troika of lenders that include the European Central Bank, International Monetary Fund and the rescue fund controlled by the euro zone.

The Nikkei 225 Stock Average rose 8.66 to 9,171.16, the highest since July 4. The broader Topix Index closed down 1.15 to 764.66.

The yen weakened to 79.66 yen from 79.36 yen at close on Friday and lifted stocks of auto and electronics makers.

Stocks in Review

The yen softness helped automakers and electronics exporters.

Honda Motor Co. added 5 yen to 2,647 yen and Nissan Motor Co Ltd slipped 6 yen to 789 yen.

Nippon Steel closed unchanged at 177 yen and JFE Holdings Inc lowered 2 yen to 1,142 yen.

Tokyo Steel Manufacturing gained 3.4% to 306 yen after the furnace maker revised prices between 5% and 8% for scrap steel according to the information on its website.

Canon Inc increased 12 yen to 2,779 yen, Seiko Epson Corp climbed 14 yen to 557 yen and Ricoh Co Ltd down 1 yen to 657 yen. Sony Corp added 2 yen at 946.

Panasonic Corp gained 3 yen to 591 yen, Toshiba grew 3 yen to 281 yen and Nikon advanced 19 yen to 2,197 yen. Sharp slipped 10 yen to 174 yen.

Nintendo Co. Ltd dropped 40 yen at 8,720 yen, Fujitsu up 0.6% to 323 yen and Pioneer Corp. gained 6 yen to 227 yen.

Fanuc Ltd declined 40 yen to 13,370 yen and Komatsu Ltd slumped 24 yen to 1,767 yen and Hitachi Construction Machinery Co decreased 27 yen to 1,483 yen on cautious comments from Merrill Lynch.

Yamada Denki climbed 15 yen to 4,305 yen. Nitori Holdings Co jumped 130 cents to 7,420 yen, apparel retailer Shimamura advanced 160 yen to 9,350 yen and Sagami Co slid 3 yen to 142 yen.

Fast Retailing Co. increased 20 yen to 17,940 yen and J. Front Retailing Co. Ltd gained 5 yen to 399 yen.

Don Quijote jumped nearly 5% to 2,875 yen after the discount retailer estimated 4% increase in operating profit to 30.5 billion yen in the current fiscal year.

Kajima Corp added 3 yen to 228 yen and Taisei Corp down 1 yen to 223 yen. Sekisui House Ltd up 1 yen to 750 yen and Daito Trust Construction Co Ltd dropped 50 yen to 7,670 yen.

Tokyo Tatemono Co., Ltd slipped 6 yen to 286 yen and Mitsui Fudosan slumped 23 yen to 1,541 yen and Sumitomo Realty & Development Co. decreased 13 yen to 2,011 yen.

Kansai Electric Power Company, Inc slipped 7 yen to 670 yen.

Inpex Corp dropped 2.3% to 476,500 yen and Japan Petroleum Exploration Co. slid 5 yen to 3,200 yen.

Mitsubishi Corp declined 1.4% after chief financial officer of the trading company was quoted in the Nikkei business daily over the weekend that reaching 500 billion yen net earnings in the current fiscal year may be difficult.

Mitsui O.S.K. Lines, Ltd closed unchanged at 226 yen, Kawasaki Kisen Kaisha, Ltd closed unchanged at 113 yen and Nippon Yusen K.K. closed unchanged at 177 yen.

Mitsubishi UFJ Financial Group slid 2 yen to 368 yen and Sumitomo Mitsui Financial Group slipped 14 yen to 2,500 yen. Nomura Holdings, Inc lowered 1 yen to 284 yen.

Tokio Marine gained 8 yen to 1,971 yen and Mito Securities decreased 2.5% to 154 yen.

Credit Saison Co Ltd jumped 12 yen to 1,862 yen.