Nikkei Rebounds, Japanese Companies Consider Leaving China

Nigel Thomas
21 Sep, 2012
New York City

Stocks rebounded in Tokyo after falling the most in three weeks as investors turned focus to domestic companies and defensive sectors. Sharp Corp surged 5% on reports that the company is in talks with Intel Corp. Japan Tobacco gained 3%.

[R]7:00 PM Tokyo – Stocks rebounded in Tokyo after falling the most in three weeks as investors turned focus to domestic companies and defensive sectors. Sharp Corp surged 5% on reports that the company is in talks with Intel Corp. Japan Tobacco gained 3%.[/R]

Investors were on the defensive and looked at domestic companies after the latest central bank stimulus program was deemed inadequate.

Investors are increasingly factoring the possibilities that the recent market advances are more likely to be transitory and worried that the latest monetary steps in Japan, the euro zone and the U.S. will have limited impact.

The Nikkei 225 Stock Average increased 23.02 to 9,110 and the broader Topix Index gained 2.57 to 756.38. For the week, the Nikkei climbed 2.7%.

After the recent anti-Japanese demonstrations in China, several large companies are looking closely at pulling out of the country and focus on new developments in India, Vietnam and Thailand.

In a survey conducted by local media outlets, at least 40% of companies said they are evaluating their business plans in China and are open to relocate if necessary.

Stocks in Review

Japan Tobacco gained 3% to 2,336 yen after its unit Torii Pharmaceuticals Co reported positive results in a phase 3 study of its treatment for dialysis patients.

Japan Airlines Co Ltd declined 4.3% or 165 yen to 3,680 yen after rising in the first two days as a listed company and dropped below the initial public offering price after 12,000 customers cancelled trips to China on the recent anti-Japanese protests.

Mitsui O.S.K. Lines, Ltd closed unchanged at 209 yen and Kawasaki Kisen Kaisha, Ltd closed unchanged at 111 yen and Nippon Yusen K.K. closed unchanged at 154 yen.

Toyota Motor slipped 10 yen to 3,200 yen, Honda Motor Co. dropped 23 yen to 2,600 yen and Nissan Motor Co Ltd slid 1 yen to 701 yen.

Nippon Steel lowered 2 yen to 168 yen and JFE Holdings Inc declined 39 yen to 1,125 yen. Tokyo Steel Manufacturing down 1 yen to 285 yen.

TDK decreased 25 yen to 3,110 yen, Murata Manufacturing Co slid 0.2% to 4,285 yen and Meiko Electronics Co Ltd slumped 4.7%.

Canon Inc climbed 26 yen to 2,797 yen and Seiko Epson Corp down 1 yen to 537 yen and Ricoh Co Ltd lowered 2 yen to 725 yen. Sony Corp decreased 11 yen to 996.

Panasonic Corp slipped 13 yen to 544 yen and said that the company still does not know when it will reopen its damaged factory in the port city of Qingdao, China after protests and if it will affect earnings.

Nikon jumped 40 yen to 2,181 yen and Toshiba Corp, closed unchanged at 265 yen.

Olympus up 0.9% to 1,494 yen, Nintendo Co. Ltd added 10 yen to 9,760 yen, Fujitsu closed unchanged at to 304 yen and Pioneer Corp. slumped 7 yen to 236 yen. Sharp Corp soared 10 yen or 5% to 212 yen.

Fanuc Corp. declined 110 yen to 13,620 yen and Komatsu Ltd dropped 26 yen to 1,593 yen. Hitachi Construction Machinery Co decreased 17 yen to 1,316 yen.

FamilyMart Co Ltd, the convenience chain operator climbed 45 yen to 3,760 yen and Lawson advanced 70 yen to 5,770 yen. Ito En Ltd added 2 yen to 1,535 yen.

Seven & I Holdings Co jumped 32 yen to 2,387 yen.

Yamada Denki increased 15 yen to 3,575 yen. Nitori Holdings Co climbed 250 cents to 8,030 yen, apparel retailer Shimamura gained 20 yen to 9,000 yen and Sagami Co up 1 yen to 120 yen.

Fast Retailing Co. closed unchanged at 18,060 yen and J. Front Retailing Co. Ltd gained 9 yen to 434 yen.

Kajima Corp up 3 yen to 217 yen and Taisei Corp added 1 yen to 221 yen. Sekisui House Ltd increased 7 yen to 780 yen and Daito Trust Construction Co Ltd advanced 50 yen to 7,880 yen.

Credit Saison Co Ltd climbed 25 yen to 1,874 yen.

Tokyo Tatemono Co., Ltd slid 2 yen to 292 yen and Mitsui Fudosan added 2 yen to 1,584 yen and Sumitomo Realty & Development Co. up 2 yen to 2,079 yen.

Inpex Corp gained 2% to 488,500 yen and Japan Petroleum Exploration Co. jumped 30 yen to 3,195 yen. Tokyo Electric Power Company, Inc. added 2 yen to 133 yen.

Mitsubishi UFJ Financial Group slid 4 yen to 375 yen and Sumitomo Mitsui Financial Group slumped 14 yen to 2,539 yen. Nomura Holdings, Inc slipped 5 yen to 290 yen.