Nikkei Extends Rally to Seventh Day, Kansai Electric Plunges 13%

Nigel Thomas
23 Oct, 2012
New York City

Stocks in Japan closed higher for the seventh day in a row as the yen softened to a 4-month low. Utilities dropped more than 6% after Kansai Electric was said to cancel its annual dividend and report a loss in six-month period.

[R]7:00 PM Tokyo – Stocks in Japan closed higher for the seventh day in a row as the yen softened to a 4-month low. Utilities dropped more than 6% after Kansai Electric was said to cancel its annual dividend and report a loss in six-month period.[/R]

The benchmark Nikkei index closed higher for the seventh day in a row and the yen softened to a four-month low as investors look ahead to the central bank meeting at the end of the month.

The Nikkei 225 Stock Average gained 3.54 to 9,014.25 and the broader Topix Index slid 4.35 to 749.37.

The yen weakened against the dollar to 80.02 from 79.65 in Monday’s closing.

Investors are bracing for peak earnings season next week as 570 companies of the 1,670 companies listed in the Topix index are scheduled to release earnings next week.

Stocks in Review

Kansai Electric plunged 13% to 595 yen after the Nikkei newspaper reported that the utility is not likely to pay previously announced 60 yen annual dividend for the first time since fiscal 1951.

In addition, Jiji news agency said that the utility is expected to report a net loss of 125 billion yen for the six months period to September.

GS Yuasa dropped 13% to 314 yen after the automotive battery maker lowered its annual net income forecast by 39% to 8 billion yen.

Mitsubishi Corp slid 0.9% to 1,391 yen after the company lowered its annual profit outlook by 34% and cut its planned dividend.

Japan Tobacco added 0.8% to 2,309 yen and Japan Airlines Co Ltd gained 0.4% to 3,820 yen.

Mitsui O.S.K. Lines, Ltd slid 1 yen to 193 yen and Kawasaki Kisen Kaisha, Ltd closed unchanged at 101 yen and Nippon Yusen K.K. down 1 yen to 151 yen.

Toyota Motor slipped 5 yen to 3,145 yen and Honda Motor Co. lowered 1 yen to 2,612 yen and Nissan Motor Co Ltd down 2 yen to 702 yen.

Nippon Steel slid 1 yen to 173 yen and JFE Holdings Inc slumped 20 yen to 1,078 yen. Tokyo Steel Manufacturing dropped 11 yen to 266 yen.

TDK slumped 35 yen to 3,015 yen, Murata Manufacturing Co declined 45 yen to 4,025 yen and Meiko Electronics Co Ltd added 0.5% or 632 yen.

Canon Inc plummeted 41 yen to 2,613 yen and Seiko Epson Corp decreased 10 yen to 487 yen and Ricoh Co Ltd slipped 9 yen to 760 yen. Sony Corp closed unchanged at 979.

Panasonic Corp added 3 yen to 523 yen and Nikon advanced 32 yen to 2,044 yen and Toshiba Corp, slid 2 yen to 285 yen.

Olympus Corp. decreased 1.6% to 1,387 yen, Nintendo Co. Ltd climbed 20 yen to 10,470 yen, Fujitsu down 6 yen to 310 yen and Pioneer Corp. closed unchanged at 194 yen. Sharp Corp lowered 3 yen to 157 yen.

Fanuc Corp. jumped 240 yen to 13,200 yen and Komatsu Ltd slipped 7 yen to 1,703 yen. Hitachi Construction Machinery Co slid 2 yen to 1,365 yen.

FamilyMart Co Ltd, the convenience chain operator climbed 50 yen to 3,740 yen and Lawson jumped 50 yen to 5,820 yen. Ito En Ltd added 3 yen to 1,540 yen.

Seven & I Holdings Co advanced 44 yen to 2,463 yen.

Yamada Denki plummeted 90 yen to 3,170 yen. Nitori Holdings Co dropped 300 yen to 6,550 yen, apparel retailer Shimamura declined 90 yen to 8,180 yen and Sagami Co added 3 yen to 121 yen.

Fast Retailing Co. advanced 220 yen to 17,300 yen and J. Front Retailing Co. Ltd slipped 7 yen to 411 yen.

Credit Saison Co Ltd slumped 16 yen to 1,780 yen.

Tokyo Tatemono Co., Ltd up 1 yen to 344 yen and Mitsui Fudosan decreased 6 yen to 1,645 yen and Sumitomo Realty & Development Co. slipped 10 yen to 2,208 yen.

Inpex Corp declined 1.5% to 478,500 yen and Japan Petroleum Exploration Co. declined 35 yen to 3,485 yen. Tokyo Electric Power Company, Inc. slid 2 yen to 132 yen.

Mitsubishi UFJ Financial Group lowered 4 yen to 369 yen and Sumitomo Mitsui Financial Group dropped 25 yen to 2,450 yen. Nomura Holdings, Inc lowered 2 yen to 291 yen.